ABLE ACT UPDATE 2017
Over two years after the ABLE Act was passed, fewer than half of the fifty states are offering ABLE accounts. The good news is that the number is growing on a monthly basis. In January, a consortium of fourteen states has begun launching their plans. Among these states is Illinois. Please see the state graphic below for a view of the states that have open plans as of January 30, 2017. In the future, you can visit www.ablenrc.org to view an updated listing of states that have plans available. This website also offers a simple comparison tool that allows families to compare features of the various state plans.
Thus far, we favor the TN plan which is available to non-residents. It has among the lowest fees of any state program, solid low-cost investment options, complete transparency with respect to the investment choices and their expenses, and a user-friendly website.
For residents of some states, there is a state income tax deduction available for contributions to the ABLE accounts. The amounts vary by state. This added benefit could tip the scales in favor of using your resident state plan. For Illinois residents, there is no state income tax deduction.
If you have questions about ABLE accounts, please contact us.