An ABLE account is a special bank account that can be used for checking, saving, or investing. This type of account was new in the State of Illinois as of 2017. ABLE Accounts can
only
be created online through 5/3 Bank.
An ABLE account allows an individual to have over $2,000 to their name EVEN if they receive SSI, Medicaid, or other public benefits (benefits should not be directly deposited into an ABLE account as it is meant for other income).
If set-up as a checking-type account, a debit card is provided for making purchases.
The account can be split up and used for checking, saving, and investing; for example be 25% checking, 75% savings/investing. There is a $14,000 yearly contribution limit; if balance is below $100,00 then it is except from taxes.
Family and friends can contribute to the fund online using a special code (great idea for graduation, holidays, other special events). Check out
https://www.ugiftable.com/home.html
for more information.
