Illinois State Treasurer Michael Frerichs Lowers Fees on IL ABLE Accounts
SPRINGFIELD – Illinois State Treasurer Michael Frerichs announced reduced fees for account owners in a program that allows people with disabilities to save their own money for disability-related expenses.
Annual account maintenance fees were lowered approximately 25 percent for Illinois Achieving a Better Life Experience (IL ABLE) account owners who receive their statements electronically. Additionally, program management fees were reduced an average of 6 percent.
The lower fees are the result of a new contract between the Office of the Illinois State Treasurer and Ascensus College Savings, the program manager. The Illinois State Treasurer’s Office led the negotiations for the benefit of the National ABLE Alliance, which
includes 17 states and Washington, D.C.
“IL ABLE is an important resource for people with disabilities and their families,” Frerichs said. “We recognize that lowering fees will empower account owners to save more money and build a more secure financial future.”
The Office of the Illinois State Treasurer administers IL ABLE, a tax-advantaged savings and investment program that allows qualified individuals with disabilities to save and invest for disability-related expenses without losing eligibility for federal public benefits
such as Supplemental Security Income (SSI) and Medicaid. IL ABLE offers six investment options ranging from conservative to aggressive
and an FDIC‑insured checking account option. IL ABLE account earnings grow tax-deferred and are tax‑free if used for
qualified disability-related expenses.
Since the launch of IL ABLE in 2017, more than $40 million has been
contributed to IL ABLE accounts, and account owners maintain an average account balance of $9,200. Approximately $340 million has been deposited into accounts in the National ABLE Alliance
Program since the first plan launched in 2016. More than 33,000 account owners across the National ABLE Alliance will benefit from the lower fees, including nearly 3,500 in Illinois.
For individuals who receive SSI benefits and have a $2,000 cap on assets, IL ABLE account assets are not counted against the cap up to $100,000.
For more information about IL ABLE, call (888) 609-8683 or visit illinoisable. com to obtain plan disclosure documents, which include investment objectives, risks, charges, expenses, and other important
information about the program.
