ABLE Accounts

Given that ABLE to Work contributions have only been available for ABLE account holders since June 2018, MarylandABLE is thrilled to see that so many people have taken advantage of this opportunity to save additional money based on their employment status.

Maryland ABLE would like to inform stakeholders of the new amount that is allowed for ABLE to Work contributions for 2020. You may remember that the maximum annual contribution above the $15,000 standard contribution for people who are working and not contributing to their employers retirement plan (nor is their employer contributing to a retirement plan for them) was $12,140. This number is based on the prior year’s federal poverty level wage for a single person household.

In 2020, the amount is $12,490! This mean that a person who has an ABLE account and qualifies for ABLE to Work contributions, can deposit  an amount of money up to their annual wages not to exceed $12, 490 in 2020, in addition the to $15,000 standard deduction!

For additional information, visit www.marylandable.org.