State Account Limit: $350,000
Annual Contribution Limit: 16000
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 his or her ABLE Account. The additional amount that may be contributed is an amount equal to the Account Owner’s compensation or equal to the poverty line for a one-person household for the prior calendar year, whichever amount is the less. This is up to $12,880 for residents of South Dakota and the continental U.S.; $16,090 for residents of Alaska and $14,820 for residents of Hawaii.
Withdrawal Hold Rules: Yes.
State Income Tax Deduction: No. There is no state income tax for residents of South Dakota.
HB 1224 was signed into law on 3/11/2016. The bill:
- Excludes contributions to an account in a qualified ABLE savings program, earnings on the contributions or distributions from the account for qualified disability expenses from consideration when determining eligibility for state benefit programs.
- Authorizes the Investment Council to provide information about ABLE savings programs to residents of South Dakota.