HB3117 - ABLE Account Program Summary

• Creates the "Achieving a Better Life Experience" (ABLE) account program to help individuals and families save private funds for disability-related expenses through tax-advantaged accounts modeled on federal Section 529A accounts.

• Establishes that the Secretary of Human Services administers the program with support from the Illinois State Board of Investment, with participating financial institutions processing new accounts and transferring contributions within one business day.

• Permits contributions and account establishment for individuals with disabilities (those with severe functional impairments before age 26 or who are blind), with separate accounts maintained per beneficiary and qualified distributions allowed for disability-related expenses including medical care, education, housing, and assistive technology.

• Allows qualified distributions anytime after an expense is incurred or up to 90 days before an expense for guardians with a written estimate; non-qualified distributions subject to income tax on earnings plus 10% penalty.

• Amends the Illinois Income Tax Act to allow individual taxpayers a deduction for contributions to qualified ABLE accounts, with the program required to comply with federal Internal Revenue Code Section 529A requirements.