IL HB3360

Creates the "Achieving a Better Life Experience" (ABLE) account program administered by the State Treasurer to help individuals and families save private funds for disability-related expenses.

Eligible individuals must have a medically determinable physical or mental impairment causing marked and severe functional limitations lasting at least 12 months, or be blind, and be under age 26 when the condition occurred.

Qualified disability expenses include education, housing, transportation, employment training, assistive technology, health services, legal fees, and funeral expenses, with contributions and maximum balances subject to Internal Revenue Code Section 529A limits.

Accounts are processed through participating financial institutions (FDIC-insured banks and credit unions) which transfer contributions to the State Treasurer within one business day; the Treasurer may invest funds similar to the Illinois State Board of Investment and charge an annual administrative fee.

Distributions used for qualified expenses are exempt from Illinois state and local taxation; non-qualified distributions are subject to income tax and a 10% penalty on earnings, and the program cannot accept funds until the IRS issues final regulations for state ABLE programs.