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  • Eric Kearney

ABLE account aggregate annual contribution raised to $15,000 nationally


The ABLE National Resource Center has a lot of great information on each state, and released the following. Keep in mind, however, that if you have a new matter, the client can contribute $14,000 in calendar year 2017, and another $15,000 on January first.

Many Special Needs Trust Trustees are reducing ongoing trust expenses by closing small SNTs by transferring the funds to the ABLE account to be managed by the court-appointed legal guardian. Check with your attorney to see whether this is an option for you.

Original Post from ABLE National Resource Center here:

Annual Contributions to ABLE Accounts Increased to $15,000 in 2018

The ABLE National Resource Center is pleased to share that the total annual contribution limit to an ABLE account will be increased from $14,000 per tax year to $15,000 per tax year beginning in 2018.

The Internal Revenue Service (IRS) recently announced a multitude of tax year 2018 annual inflation adjustments, including an increase to Section 2503, the federal gift tax exclusion. Section 529A(a)(2) of the Stephen Beck Jr. Achieving a Better Life Experience (“ABLE”) Act (PL 113-225) specifically ties the annual contribution limit for ABLE accounts to section 2503(b) of the federal tax code, therefore any inflation adjustment to this section automatically adjusts the annual ABLE contribution limit.

“Tying these sections together was done by design, so that periodic increases to the federal gift tax exclusion will automatically result in a greater annual contribution limit to ABLE accounts” says Michael Morris of National Disability Institute. Beginning in 2018, each ABLE account will be able to accept up to $15,000 in aggregate annual contributions.

For more information about ABLE accounts, please visit the ABLE National Resource Center at www.ablenrc.org.

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