article ABLE Savings Accounts

Achieving a Better Life Experience (ABLE) accounts allow eligible SSI beneficiaries to save funds for disability-related expenses in a tax-advantaged account. Savings in these funds will not be counted as resources by SSA when determining continued SSI eligibility.

ABLE Accounts for SSI Beneficiaries

ABLE savings accounts were created as a result of the Stephen Beck Jr., Achieving a Better Life Experience Act of 2014, better known as the ABLE Act. On January 1, 2026, the ABLE Age Adjustment Act expanded eligibility by raising the age of disability onset from before age 26 to before age 46. An ABLE account is a type of tax-advantaged account that can be used to save funds for the disability-related expenses of the account's designated beneficiary, who must be blind or have a disabling condition that began before their 46th birthday. The designated beneficiary must be:

• Receiving SSI based on disability or blindness that began before age 46;
• Entitled to SSDI, Childhood Disability Benefits (CDB), or Disabled Widows or Widowers Benefits (DWB) based on disability or blindness that began before age 46; or
• Someone who self-certifies that they have a signed diagnosis from a licensed physician confirming a disability or blindness that began before age 46.

A beneficiary may only have one ABLE account.

Why Open an ABLE Account?

Eligibility for SSI, as well as some other public benefits, requires that an individual maintain less than $2,000 in cash savings or other items of significant value. However, the ABLE Act recognizes the extra and significant costs associated with living with a disability, or raising a child with significant disabilities. These costs can include obtaining accessible housing and transportation, personal assistance services, assistive technology, and health care not covered by insurance.

Using an ABLE savings account, eligible individuals and their families will be allowed to save money associated with these expenses without it affecting their eligibility for SSI or other public benefits.

Contributions to the Account

Contributions to the account can be made by any person, including the account beneficiary, family, and friends. They must be made using post-tax dollars and are not deductible for federal tax purposes, although some states allow a state income tax deduction. Income earned by the account is not taxed. The total annual contributions from all sources for a single tax year is $20,000 for 2026. This amount is adjusted periodically for inflation, so check the ABLE National Resource Center for the current year's limit.

• The total limit over time that could be made to an ABLE account will be subject to the individual state’s limit for education-related 529 savings accounts.
• Many states have set this limit at more than $300,000 per plan.

ABLE to Work

Over and above the standard annual contribution limit, a working beneficiary may contribute an additional amount up to the lesser of their compensation for the current year or the ABLE to Work limit, which is $15,650 for 2026. If the beneficiary or their employer is contributing to a 401(k), 403(b), or 457(b), the beneficiary is not eligible to make ABLE to Work contributions.

Additional Contribution Guidelines for SSI Recipients

For individuals with disabilities who are recipients of SSI, the ABLE Act sets some further limitations.

• The first $100,000 in ABLE accounts would be exempted from the SSI $2,000 individual resource limit.
• If and when an ABLE account exceeds $100,000, the beneficiary’s SSI cash benefit would be suspended until such time as the account falls back below $100,000.
• It is important to note that while the beneficiary’s eligibility for the SSI cash benefit is suspended, this has no effect on their ability to receive or be eligible to receive medical assistance through Medicaid.

Additionally, upon the death of the beneficiary, the state in which the beneficiary lived may file a claim to all or a portion of the funds in the account up to the amount in which the state spent on the beneficiary through their state Medicaid program. This is commonly known as the “Medicaid Pay-Back” provision and the claim could recoup Medicaid related expenses from the time the account was open.

Eligible Expenses Allowed by ABLE Accounts

Certain qualified disability expenses can be distributed from the ABLE account if they are expenses related to the blindness or disability of the designated beneficiary. Examples of qualified disability expenses include education, housing, transportation, employment training and support, assistive technology, personal support services, health care expenses, financial management, and administrative services and other expenses which help improve health, independence and/or quality of life.

Ready to Learn More about Setting up an ABLE Account?

Most states operate an ABLE program, and the majority enroll individuals regardless of state of residence. The ABLE National Resource Center maintains a state comparison tool to help you find the program that best meets your needs.