Krispy Kreme & NC ABLE
Welcome Krispy Kremers
The NC ABLE Program offers savings and investment accounts to individuals of all ages with the occurrence of disability prior to the age of 26. This program allows eligible individuals to contribute by payroll direct deposit to tax-advantaged accounts. The earnings on your investments are federally tax-deferred and tax-free if used for qualified disability expenses. That can help your savings compound with returns on your earnings.
Funds in your NC ABLE account do not impact eligibility for public supports. This includes asset limits imposed by Medicaid, SSI, FAFSA, HUD, SNAP. You can maintain your current benefits and save for current or future disability expenses. But, you do not have to be on public supports to take advantage of the benefits of the NC ABLE Program.
NC ABLE Annual Limit
All eligible individuals can save up to $18,000 per year (increasing to $19,000 in 2025) in an NC ABLE account, even if you are participating in Krispy Kreme's 401(k) plan. It is important to remember that the $18,000 limit includes deposits from all sources (family, friends, federal and state benefits and direct deposit payments).
Increase in contributions with the ABLE to Work Act*
Provided you are not participating in the Krispy Kreme 401(k) plan, you may be eligible to save more in your NC ABLE account through the ABLE to Work act. This is in addition to the annual limit of $18,000 (increasing to $19,000 in 2025). This additional amount must come from payroll direct deposit.
Potential annual contributions for working individuals*
As a working NC ABLE account holder, you have the opportunity to contribute up to this amount each year, provided you do not participate in the Krispy Kreme 401(k) plan.
NC ABLE Eligibility & Contributions
Living with a disability can add some difficulties and hurdles in life. Saving and investing should not be one of them.
In 2014, federal legislation known as the Achieving a Better Life Experience (ABLE) Act was passed. It established tax-advantaged savings accounts for eligible individuals to save funds for qualified everyday expenses—without endangering eligibility for benefits.
NC ABLE accounts are available to qualified individuals across the United States. Eligible individuals can open an account for themselves, or an authorized individual can open an account on their behalf.
You are eligible if your disability was present before the age of 26, and at least ONE of the following is true:
- You have a disability with a written diagnosis from a licensed physician that can be produced if requested; OR
- You experience blindness as determined by the Social Security Act; OR
- You are eligible for SSI or SSDI because of a disability or have one of the conditions on the Social Security Compassionate Allowances list.
Working account owners have the opportunity to save more each year, provided they are not actively contributing to an employer-sponsored retirement plan (like the Krispy Kreme 401(k) plan). As with account eligibility, you will self-certify that you are a working account owner each year. The easiest way to contribute payroll dollars is through direct deposit.
To take advantage of direct deposit, you must first open an account and elect to use the additional working contribution.
An ABLE account owner who works may also be eligible for a federal tax credit of up to $1,000 for contributions from their income to their ABLE account. More information on the Saver’s Credit is available at www.irs.gov. The Saver's Credit is scheduled to expire after December 31, 2025.
Contributions from someone other than the account owner or the account owner's employer cannot be used for additional contributions under the ABLE to Work Act’s increased contribution limit. However, these types of contributions to an NC ABLE account can go towards the $18,000 annual limit.
| Account Owner | Eligible Working Account Owner | Source of Contributions | |
|---|---|---|---|
| Annual Limit | $18,000* | $18,000* | Account owner, parents, family, friends, or others |
| Additional Contribution Limit | $0 | Lesser of $14,580 or actual income | Account owner or employer |
| Total Contribution Limit | $18,000* | up to $32,580 |
*Annual contribution limit increases to $19,000 in 2025.
It is important to note that contributing earned income to an ABLE account does NOT exclude the amount of the contribution from an account holder’s income for tax purposes or when determining eligibility for certain benefits. If you work as an NC ABLE account owner, your earned income will have the same effect on SSI, Medicaid, and other means-tested benefits as income that is not contributed to an ABLE account earned income even if you deposit it into an NC ABLE account.
Open an NC ABLE account with at least a $25 deposit. As you move through the enrollment process, you will be able to select the method for making the deposit (much like opening a bank account online) and you will be able to select your account type(s). The NC ABLE Program offers six investment options, ranging from conservative to aggressive, and a checking account. Once you complete the enrollment process, you will receive your account number.
Qualified Disability Expenses (QDEs)
You can use your NC ABLE account to pay for a variety of expenses related to maintaining your health and independence and improving your quality of life. Broadly defined, QDEs are essentially anything that helps the account holder achieve a better life experience.
You may be surprised how many everyday costs qualify as disability-related expenses.
