Living with a disability is often associated with significant amounts of extra costs. That’s why individuals and families can now contribute to ABLE accounts — tax-advantaged savings accounts that can fund disability expenses.
Living with a disability is expensive. According to the National Disability Institute (NDI) report, The Extra Costs of Living with a Disability in the U.S. , adults with disabilities require, on average , 28 percent more income to achieve an identical standard of living as a household of the same size and income where no one has disabilities. Millions of individuals with a disability depend on public benefits for income, health care, food and housing. Many needs-based programs restrict eligibility to people with less than $2,000 in countable resources (cash and funds in a non-ABLE checking account, saving account and some retirement accounts). If a person saves more than this limit, they risk losing critical benefits they need.
Saving in an ABLE account allows people with disabilities to keep benefits if they need them. Up to $100,000 of ABLE funds is not a countable resource for Supplemental Security Income (SSI). Any amount of funds in an ABLE account up to the state plan limit does not affect someone’s current or future eligibility for programs like FAFSA (Free Application for Federal Student Aid), HUD (Housing and Urban Development), SNAP (Supplemental Nutrition Assistance Program), Medicaid, Medicare, SSDI (Social Security Disability Insurance) or VRS (Vocational Rehabilitation Services). Funds invested in an ABLE account grow tax-free and can be used for a broad range of expenses including food, housing, transportation, education, employment, medical expenses and more.
Individuals are eligible to open an ABLE account if their disability began before age 26* and they meet the required severity of disability in one of two ways: (1) they are receiving Supplemental Security Income payments or Social Security Disability Insurance Benefits; OR (2) their licensed physician signs a document ( sample disability certificate) including the diagnosis and stating that they have “marked and severe” functional limitations which began before age 26. Enrollment requirements vary by state. Typically, the account owner or authorized legal representative (ALR) certifies that they have this documentation and are not required to upload a copy of it during the enrollment process. Remember, an ABLE account may be opened at any age and the account is always opened in the name of the person who has the disability.
*Please note, on January 1, 2026, the age of ABLE eligibility is expanded to include people who have a disability that began before age 46.
Compare ABLE plans by using these comparison tools:
There are 49 ABLE plans available across the country. Look at the state where you live first because there may be tax credits or deductions if you select your state’s ABLE plan. A person may have one ABLE account. The ABLE NRC Decision Guide, “Selecting and Opening an ABLE Account,” will help you to make your choice!
Most ABLE accounts are opened online. You will need your personal information (name, address, date of birth, Social Security number) to complete the online application and financial information (your bank account number and routing number) for the initial deposit to open the account. You can choose to designate an authorized legal representative to help manage your account and identify a beneficiary. You will also have choices about the types of ABLE account (saving, checking and investments or combination) and type of account features you will select, such as use of a debit card or pre-paid card, as available in the plan you choose.
Absolutely! Do not wait to open an ABLE account! You can start with the savings option and debit card and it is perfectly fine if you decide not to invest right away. If your plan offers investment options, you can always choose to invest later once you learn more. For more information, visit the financial services page to determine what is best for you. If you need assistance from a financial advisor, you can contact the ABLE plan to select an investment advisor or you can work with your own advisor. The state plan’s disclosure documents are another reliable resource tool to reference.
The annual deposit limits are subject to change each calendar year and employed account owners may be eligible to contribute even more. Visit the ABLE Contribution Limits webpage to access up-to-date information for annual contribution limits, ABLE to Work and state plan balance limits. Remember, up to $100,000 of ABLE funds is not a countable resource for Supplemental Security Income beneficiaries.
Anyone can deposit money directly into an ABLE account, including the account owner, family, friends or employers and even a special needs or pooled trust. A 529 qualified tuition plan may be rolled over into an ABLE account. Contributions may be made using various methods, such as checks, direct deposit, electronic fund transfers, Ugift, or other gifting programs, depending on the options available in the plan.
To manage your finances effectively, follow these steps: (1) create a monthly spending plan, listing your income and monthly expenses (2) deposit benefits into a checking account: use this account to cover essential costs such as housing, food and other monthly expenses; (3) transfer extra funds into an ABLE account. The ABLE account offers tax-free investment growth and allows you to use the funds whenever needed.
When an ABLE account owner passes away, qualified disability expenses, including funeral and burial expenses , are paid first. Then, if the ABLE account owner used Medicaid services after opening the ABLE account, Medicaid may claim reimbursement under the “Medicaid payback” rule. If the account owner did not receive Medicaid, there is no payback. If Medicaid Buy-In premiums were paid, they are deducted before any payback. Some states have laws that limit Medicaid payback for ABLE account owners who use their state’s ABLE plan. An ABLE account owner may name a beneficiary for remaining funds in their ABLE plan or within their l ast w ill and t estament.
A person can have an ABLE account, a special needs trust (SNT ), pooled trust (PT) or all three! An ABLE account works well on its own or in combination with a trust account. One significant advantage to having an ABLE account and a trust is that a trust can deposit funds into an ABLE account to cover shelter costs without reducing SSI payments. To understand the benefits and differences between ABLE accounts and trusts, review the comparison chart . For more detailed information, consult the Understanding ABLE Accounts, Special Needs Trusts and Pooled Trusts Decision Guide.
The ABLE National Resource Center ( ABLE NRC ) offers a comprehensive library of ABLE-related information. Visit the ABLENRC.org online resource center to explore and learn how to open, manage and grow an ABLE account. You can explore information from the ABLE NRC A mbassadors who share their experiences as an account owner or family member of an account owner. In the “resources” section, you can access free toolkits, decision guides, informational flyers, frequently asked questions (FAQs), policy information, podcasts, webinars, AchievABLE ™ newsletters and more! Get ready to explore the power of ABLE and how it can help you build a better financial future.
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The ABLE National Resource Center is managed by the National Disability Institute.
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