What this line means
Your contributions to an ABLE (Achieving a Better Life Experience) account during the tax year. 1 ABLE accounts are tax-advantaged savings accounts for individuals with disabilities that began before age 26. If you are the designated beneficiary of the ABLE account and you made contributions from your own funds, those contributions qualify for the Saver’s Credit on this line.
Does this apply to you?
- You are the designated beneficiary of an ABLE account and contributed your own money to it
- You have a qualifying disability that began before age 26
- You are filing Form 8880 and want your ABLE contributions counted toward the Saver’s Credit
Easy to overlook
Only the designated beneficiary’s own contributions count Contributions made by parents, grandparents, or other third parties to your ABLE account do not go on your line 3. 2 The Saver’s Credit is specifically for your own retirement and disability savings. If your family contributed $5,000 and you contributed $1,000, only your $1,000 goes here. IRS Form 8880 instructions — line 3 ABLE account contributions
Rollover contributions from a 529 plan do not count You can roll over funds from a 529 education savings plan into an ABLE account, but those rollovers are not treated as contributions by the designated beneficiary. 3 Only direct contributions from your earnings or other personal funds qualify for line 3. IRS Publication 907 — Tax Highlights for Persons with Disabilities
Watch out for this
Exceeding the annual ABLE contribution limit. Total contributions to an ABLE account from all sources cannot exceed the annual gift tax exclusion amount ($19,000 for 2025). 4 Employed ABLE beneficiaries who do not participate in an employer plan can contribute additional amounts up to the federal poverty level. Do not enter more than your allowable contribution on this line.
Footnotes
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IRS Form 8880 Instructions, Line 3. https://www.irs.gov/instructions/i8880 ↩
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IRS Form 8880 Instructions, ABLE Account Contributions. https://www.irs.gov/instructions/i8880 ↩
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IRS Publication 907, ABLE Accounts. https://www.irs.gov/publications/p907 ↩
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IRS Publication 907, ABLE Account Contribution Limits. https://www.irs.gov/publications/p907 ↩