An ABLE (Achieving a Better Life Experience) account is a tax-advantaged savings account for individuals with disabilities. It allows families to save money for their child’s future without affecting their eligibility for government benefits like Medicaid or SSI.
- Tax-Free Growth: Money in an ABLE account grows tax-free when used for qualified expenses.
- Doesn’t Affect SSI or Medicaid: Savings up to a certain limit ($100,000 for SSI) won’t impact benefits.
- Flexible Use: Funds can be used for housing, education, assistive technology, therapy, and more.
- Anyone Can Contribute: Family, friends, and even organizations can contribute.
To be eligible for an ABLE account, the individual must have a disability that began before age 26 (some states are expanding this to age 46).
Each state has its own ABLE program. You don’t have to open an account in the state where you live—some states allow out-of-state applicants.
Check your state’s ABLE program here: https://www.ablenrc.org/state-plan-map/
- “I can’t open an ABLE account if my child gets SSI.” (False – You can.)
- “ABLE accounts are only for medical expenses.” (False – They cover much more.)
- “Only parents can contribute.” (False – Anyone can contribute.)
1. Visit the ABLE National Resource Center site: https://www.ablenrc.org/state-plan-map/
2. Check your state's eligibility rules and application process.
3. Open your account and begin saving.
I’m also connecting with a mom who specializes in helping families like ours set up ABLE accounts. As I learn more, I’ll share her insights and hopefully bring her on to help you all too.