HB3163 Summary: ABLE Account Program

• Creates the "Achieving a Better Life Experience" (ABLE) account program administered by the State Treasurer to help individuals with disabilities and their families save money for qualified disability expenses.

• Establishes separate ABLE accounts for eligible individuals with disabilities, allowing contributions up to federal limits set under Internal Revenue Code Section 529A, with accounts held in trust and exempt from creditors.

• Provides tax benefits including exemption of account assets and earnings from Illinois state taxation, and allows contributions of up to $10,000 per year to be deducted from adjusted gross income under the Illinois Income Tax Act (effective for tax years beginning January 1, 2018).

• Creates an Illinois ABLE Accounts Administrative Fund (nonappropriated trust fund) to cover plan administration costs through fees charged to participants, with the State Treasurer authorized to contract with third parties for investment management and account administration services.

• Establishes protections for account owners including designated representative authority (guardians, power of attorney agents, or court-designated representatives) and prohibits account assets from being pledged as loan security or subject to state appropriation.