SIE practice questionhardABLE Accounts — Contribution Limits
Which statement about ABLE account contributions is TRUE?
- AOnly the disabled individual can contribute to the account
- BAnnual contributions are limited to the annual gift tax exclusion amount, and total balances are subject to state limits✓ Correct answer
- CThere is no limit on annual contributions
- DContributions are tax-deductible at the federal level
Explanation
Why B — Annual contributions are limited to the annual gift tax exclusion amount, and total balances are subject to state limits
ABLE account annual contributions are generally limited to the annual gift tax exclusion amount ($19,000 for 2026). Total account balances are subject to the state's 529 plan limit. Anyone can contribute, but contributions are not federally tax-deductible; employed ABLE account holders may be able to contribute additional amounts above the annual limit.
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