What is ABLE to Work?
The ABLE to Work Act, effective January 1, 2018, revised the Internal Revenue Code applicable to ABLE accounts to permit eligible employed beneficiaries to save more in their ABLE accounts.
Over and above the standard Annual Contribution Limit ($17,000 for 2023), a working beneficiary is allowed to contribute an additional amount up to lessor of: (i) the beneficiary’s compensation for the current year; or (ii) an amount equal to the Federal Poverty Level for a one-person household as determined for the calendar year preceding the tax year in which contributions are made ($13,590 for contributions made in 2023).
You can make an ABLE to Work contribution online or by using the Contribution Form.
If the beneficiary or their employer is contributing to a defined compensation plan (401(k)), annuity plan (403(b)), or deferred compensation plan (457(b)), the beneficiary is not eligible to make ABLE to Work contributions.