ABLE Accounts: Tax-Advantaged Savings for Disability Expenses

ABLE accounts (Achieving a Better Life Experience) are tax-advantaged savings accounts for disability-related expenses, modeled after 529 college plans.

Eligibility

• Disability onset before age 26 (expanding to 46 in 2026 per ABLE Age Adjustment Act).
• Meets SSI/SSDI disability criteria OR has physician certification of marked functional limitations.

Key Benefits

• Tax-free growth & withdrawals for Qualified Disability Expenses (QDEs).
• No impact on means-tested benefits (SSI, Medicaid, SNAP) up to $100,000 balance.
• Wide QDE definition: Education, housing, transportation, employment training, assistive tech, personal support, health/prevention/wellness, financial management, legal fees, funeral/burial.
• Annual contribution limit: $18,000 (2024) from all sources; additional earned income contributions allowed for working beneficiaries (up to $14,580 more).
• Investment options: Multiple risk-level portfolios (like 529s).
• Debit card access for easy QDE spending.

State Programs

• Each state sponsors a plan; you can enroll in any state's plan (most).
• Compare fees, investment options, state tax deductions (some states offer for residents).
• ABLE National Resource Center (ablenrc.org) – comparison tool, guidance.

Common Misconceptions

• "I have too many assets" – ABLE has no asset limit (only SSI suspension >$100K).
• "I'm not on SSI" – eligibility is based on disability criteria, not benefit receipt.
• "It's only for kids" – adults of any age qualify if onset before 26.

ABLE accounts provide financial flexibility without jeopardizing essential benefits. Every eligible person should consider one.