Illinois Enhances Financial Inclusion for Individuals with Disabilities by Raising ABLE Age Limit

Important Update for Illinoisans with Disabilities

Illinois State Treasurer, Michael Frerichs, has just announced a landmark change that now allows an estimated 250,000 residents with disabilities to open ABLE accounts. This change is pivotal, enabling individuals to save and invest their money to improve their quality of life without jeopardizing essential government benefits such as Supplemental Security Income (SSI) or Medicaid.

Understanding ABLE Accounts

The Achieving a Better Life Experience (ABLE) Act, enacted by Congress in 2014, facilitated special savings accounts aimed at helping people with disabilities. These accounts allow for savings and investments without counting towards the $2,000 asset limit typically enforced by means-tested federal benefits. However, the original legislation stipulated that individuals had to acquire their disabilities before turning 26 years old.

In a significant development this year, Illinois lawmakers have increased the eligibility age to 46. This change potentially opens the door for an additional 6 million people across the United States, who previously fell into the exclusionary age bracket, to establish ABLE accounts.

A Game Changer for Residents

“This is a game-changer,” Treasurer Frerichs emphasized. The previous requirement led to many deserving individuals being unjustly excluded based on arbitrary age limits. With the updated law, individuals injured in car accidents, those diagnosed with neurological conditions after age 26, or veterans injured during their service can now benefit from ABLE accounts.

Financial Implications

Living with a disability can often result in substantial expenses related to medical treatments, vocational training, mobility aids, and other services. Previously, individuals had to navigate their financial resources carefully, often avoiding savings to prevent losing critical government assistance. Under the new provisions, money saved in an ABLE account is not factored into the asset limit, allowing individuals to accrue funds while still receiving necessary aid.

Testimonials from Beneficiaries

Lynn Ludaway, a resident of Evanston diagnosed with multiple sclerosis at age 36, expressed her relief at the expanded eligibility. “The benefits are not merely financial; they also encompass growth opportunities and necessary planning for the future.