Wisconsin
Program Name:
No program – eligible Wisconsin residents may open an account with another state that accepts non-residents into its program.
Status: The Wisconsin Department of Financial Institutions is currently developing an ABLE Savings Plan for Wisconsin Residents. More information can be found here on the program’s status. In the meantime, ABLE-eligible Wisconsin residents may establish an ABLE account with any state’s program that accepts nonresidents.
State Program Manager: NA
Accepts Out Of State Residents: No
Annual Contribution Limit: $20,000 (This limit is a Federal limit that is required of all states and does not include additional ABLE to Work contributions.)
ABLE To Work Act Contribution: An Account Owner who is employed and who is not contributing to a defined contribution plan, an annuity contract or an eligible deferred compensation plan may contribute additional money to their ABLE Account. The additional amount that may be deposited is an amount equal to the Account Owner’s employment income or equal to the poverty line for a one-person household for the prior calendar year, whichever amount is less. This is up to $15,650 for residents of the continental U.S.; $19,550 for residents of Alaska and $17,990 for residents of Hawaii.
Program Banking Institution: NA
Program Investment Institution(s): NA
State Income Tax Deduction: Yes. Wisconsin residents with disabilities may establish an ABLE account in another state that has contracted with their provider to allow nonresidents to create ABLE accounts. A Wisconsin subtraction from federal adjusted gross income is allowed for the amount deposited in the taxable year into an ABLE account by an account owner or any other person. This subtraction does not apply to rollovers or transfers to the account.
FDIC Insured: No. NA
ABLE Legislation:
2015 Senate Bill 21 – 2015 WISCONSIN ACT 55
2023 Senate Bill 668 – 2023 Wisconsin Act 267
The cumulative limit for an ABLE account is set by each state’s ABLE program; Wisconsin residents must adhere to the asset limit of the state program in which they open an account.
ABLE was added to the Executive Budget Act of 2015 (SB 21) on 7/12/15.
IMPORTANT NOTE: AB 731 was introduced on 1/15/16. This legislation repeals the Wisconsin ABLE Law but applies a state income tax deduction to ABLE accounts opened in other states. AB 731 passed Assembly on 2/16/16 and the Senate concurred on 3/16/16. It was signed into law on 3/30/16.
Program at a Glance
- Fee Range
Wisconsin allows a state income tax deduction for contributions to ABLE accounts opened in other states. Find more information on the Wisconsin Department of Revenue website.