In 2025, contributions to ABLE accounts can reach up to $19,000, which is a $1,000 increase from 2024. This adjustment follows the Internal Revenue Service's decision to raise the federal gift tax limit. As the cap on annual deposits for ABLE accounts is linked to this federal gift tax limit, it will also increase accordingly. This change offers individuals with disabilities and their families greater flexibility in managing their finances and planning for the future. ABLE accounts, which allow for tax-advantaged savings, are crucial tools for covering disability-related expenses without affecting eligibility for government benefits. The increased contribution limit not only helps account holders build a more substantial financial cushion but also encourages families to save more proactively. As awareness and participation in ABLE programs continue to grow, these adjustments reflect a commitment to supporting greater financial security and independence for people with disabilities.
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