ABLE Accounts

ABLE accounts let people with disabilities save and invest money without losing eligibility for benefits like SSI, Medicaid, SNAP, and housing assistance. These are tax-advantaged savings accounts -- similar to 529 college savings plans, but designed specifically for disability-related expenses.

Before ABLE accounts existed, saving even a small amount of money could disqualify you from the benefits you depend on. ABLE changed that.

What an ABLE Account Does

• Tax-free growth. Your investments grow without being taxed.
• Tax-free withdrawals. Withdrawals for qualified disability expenses are not taxed and not counted as income by means-tested benefit programs.
• Asset protection. Up to $100,000 in an ABLE account is excluded from SSI's resource limit. Any amount in an ABLE account (up to the plan's limit) is excluded from resource calculations for SSDI, Medicaid, SNAP, FAFSA, HUD housing, and Medicare.
• Your money, your control. You own the account. You decide how to invest and when to withdraw.

Who Is Eligible

As of January 1, 2026, you're eligible if:

1. Your disability began before age 46 (expanded from age 26 by the ABLE Age Adjustment Act)
2. Your disability is severe enough -- it must meet the Social Security Administration's criteria: marked functional limitations that have lasted or are expected to last at least 12 months

You Don't Need to Be on Benefits

You do not need to be receiving SSI, SSDI, or any other benefit to be eligible. Employment status and income don't affect eligibility either. The only requirements are disability onset age and severity.

How to Prove Eligibility

If you receive (or have received) SSI or SSDI based on a disability that began before age 46, you're eligible. That's your proof.

If you don't receive benefits but meet the criteria, you'll need a disability certification from a licensed physician. The certification must state that:

• You have a disability
• It results in marked functional limitations
• It began before age 46
• It has lasted or is expected to last at least 12 months

Keep this documentation in your records. The ABLE plan may request it.

What You Can Spend ABLE Funds On

ABLE accounts can be used for a broad range of "qualified disability expenses" -- any expense related to maintaining or improving health, independence, or quality of life. Examples include:

• Housing -- Rent, mortgage, property taxes, utilities
• Education -- Tuition, books, supplies, tutoring
• Transportation -- Vehicle purchase, modifications, rideshare, bus passes
• Health care -- Medical, dental, vision, mental health, medications
• Employment support -- Job coaching, training, tools, work clothes
• Assistive technology -- Devices, software, modifications
• Personal support services -- Aides, attendants
• Legal fees -- Related to your disability
• Financial management -- Fees for managing the account
• Basic living expenses -- Food, clothing

Contribution Limits

Annual limit

The annual contribution limit is tied to the federal gift tax exclusion: $19,000 in 2026 (this amount adjusts annually for inflation).

Additional contributions for employed account owners

If you work and your employer does not contribute to a retirement plan on your behalf (401(k), 403(b), or 457(b)), you can contribute additional funds up to the poverty line for a one-person household (approximately $15,000-$16,000, depending on the year) on top of the annual limit.

Lifetime limit

The total balance in your ABLE account cannot exceed the state plan's limit, which varies by state. Most states cap it between $200,000 and $550,000.

Rollovers from 529 plans

Funds from a 529 college savings plan can be rolled over to an ABLE account for the same beneficiary or a family member, subject to the annual contribution limit.

How ABLE Accounts Interact with Benefits

SSI

• The first $100,000 in your ABLE account is excluded from SSI's $2,000 resource limit
• If your ABLE balance exceeds $100,000, your SSI payments are suspended (not terminated) until the balance drops back below $100,000
• While suspended, you remain eligible for Medicaid
• ABLE withdrawals for housing expenses (rent, mortgage, utilities) are counted as income for SSI purposes in the month received

Medicaid

• ABLE account balances are not counted as resources for Medicaid, regardless of amount
• This is true even if your SSI is suspended due to ABLE balances over $100,000

SNAP, HUD housing, FAFSA

• ABLE balances and distributions are excluded from resource calculations

SSDI, Medicare

• SSDI and Medicare are not means-tested, so ABLE accounts have no effect on these benefits

How to Open an ABLE Account

One account per person

You can only have one ABLE account at a time.

You don't have to use your own state's plan

Many state ABLE plans accept out-of-state residents. You can choose any plan that's open to non-residents. Some states offer state tax deductions for contributions to their own plan, so check your state's benefits first.

Steps to open an account

1. Research plans. Use the ABLE National Resource Center's comparison tools at ablenrc.org to compare state plans on fees, investment options, and features.
2. Choose a plan. Consider fees, investment choices, state tax benefits, plan limits, and online account management tools.
3. Apply online. Most plans have online enrollment that takes about 15 minutes. You'll need:

- Your mailing address and email - Your primary disability category - Information about any Social Security benefits you receive - An authorized representative (optional) -- someone who can manage the account on your behalf

1. Fund your account. You can contribute by bank transfer, check, payroll deduction, or rollover from a 529 plan.

Authorized Representatives

You are always the account owner. But you can designate an authorized representative to help manage the account. This is useful for people who need help with financial management but want to retain ownership.

What Happens to the Account After Death

Upon the account owner's death, any remaining funds are subject to a Medicaid payback provision. If the state Medicaid agency paid for services for the account owner, it can file a claim against the remaining ABLE balance. After any Medicaid payback, remaining funds go to the owner's estate.

Key Resources

• ABLE National Resource Center: ablenrc.org -- Plan comparison tools, guides, FAQs
• State plan directory: ablenrc.org/select-a-state-program
• IRS guidance: Publication 907 (Tax Highlights for Persons With Disabilities)
• SSA and ABLE: ssa.gov/ssi/spotlights/spot-able.html

Key Contacts

• ABLE National Resource Center: ablenrc.org/contact
• Your state ABLE plan: Find it at ablenrc.org/select-a-state-program
• Social Security (for benefit interaction questions): 1-800-772-1213

Related Programs

• SSI -- ABLE accounts protect savings without disqualifying you from SSI
• SSDI -- Not means-tested, but ABLE accounts can help if you also receive SSI
• Vocational Rehabilitation -- Employment expenses are qualified ABLE expenses
• Medicare & Disability -- ABLE balances don't affect Medicare eligibility