TCJA Allows for Increased Contributions to ABLE Accounts
The Tax Cuts and Jobs Act (TCJA) enables eligible individuals with disabilities to put more money into their Achieving a Better Life Experience (ABLE) accounts. Normally, contributions totaling up to the annual gift tax exclusion amount, currently $15,000, may be made to an ABLE account each year for an eligible person with a disability, known as a designated beneficiary. Starting in 2018, if the beneficiary works, the beneficiary can also contribute part or all of what they make to their ABLE account.
Also beginning in 2018, ABLE account beneficiaries can qualify for the Saver’s Credit based on contributions they make to their ABLE accounts. Up to $2,000 of these contributions qualify for this special credit designed to help low- and moderate-income workers. Click here for details.