ABLE Accounts
An ABLE account lets a person with a disability save and invest without jeopardizing means-tested benefits. It is a useful planning tool available to families. We believe it is commonly underutilized.
What an ABLE Account Is
Achieving a Better Life Experience
An ABLE account is a tax-advantaged savings account available to people who were diagnosed with a qualifying disability before age 46. Funds in the account can be used for qualified disability expenses, a broad category that covers most of the costs associated with supporting a person with a disability.
Key Features
ABLE Accounts at a Glance
The $100,000 SSI Threshold
Balances up to $100,000 are excluded from the SSI countable asset limit. If the balance exceeds $100,000, SSI is suspended, not terminated, until it drops back below that amount. Medicaid eligibility is not affected by this threshold, even while SSI is suspended.
Annual Contribution Limit
For 2026 (subject to change annually), the annual contribution limit for ABLE accounts is $20,000. Contributions can come from any source, including family members, the account holder, or others.
Qualified Disability Expenses
ABLE funds can cover education, housing, transportation, employment training, assistive technology, healthcare, financial management, and other expenses that improve health, independence, and quality of life.
Tax Advantages
Earnings grow tax-free, and withdrawals for qualified disability expenses are also tax-free. Some states also offer a state income tax deduction for ABLE contributions, worth checking what applies where you live.
Who Can Open One
To open an Attainable Savings Plan account, the account holder must have a qualifying disability diagnosed before age 46, including blindness or a physical or mental impairment serious enough to significantly limit daily functioning, the same standard used by the Social Security Administration. Eligibility can be verified by a licensed physician or through receipt of SSI or SSDI.
Common Questions
Using an ABLE Account Well
Can ABLE funds be used for housing?
Yes, but housing distributions are subject to specific SSI reporting rules. Funds not spent within the same month they’re withdrawn, or not reported to SSA within the required window, can affect SSI eligibility. Families using ABLE funds for housing should coordinate with their advisor to stay within these requirements.
What happens if the balance goes over $100,000?
SSI benefits are suspended not terminated until the balance returns below the threshold. Medicaid eligibility is not affected during the suspension.
Who can contribute to the account?
Anyone. Contributions can come from family members, the account holder, or others-up to the annual limit of $20,000 for 2026.
How does an ABLE account fit with a Special Needs Trust?
An ABLE account is one piece of a integrated special needs financial plan. River helps families understand how it fits alongside a Special Needs Trust, SSI planning, lifetime care funding, and estate planning and how to use it most effectively.
Ready to Put Every Tool in the Plan to Work?
No forms. No pressure. Just an honest conversation about where your plan stands and what it would take to bring the full picture together.