If you're an American with a disability who receives government assistance, you likely qualify for an ABLE account, or you may starting next
Named for the 2014 law that created them, the Achieving a Better Life Experience Act, ABLE accounts have been available since 2016 to individuals identified by a doctor as having a disability before the age of 26. Next year, theyāll become available to those identified before the age of 46, which will increase access to an additional 6 million people, including 1 million veterans, according to Indiana State Treasurer Daniel Elliott, who administers the accounts in his state. An estimated 8 million people nationwide already qualify.
āThe fact that it used to be that individuals could only save up to $2,000 or they could lose benefits ā that was really restricting a lot of families,ā Elliot said. āPeople were forced into a position where they couldnāt save for their futures. Now weāre seeing average account balances of (ABLE accounts) between $11,000 and $12,000.ā
Generally, ABLE accounts may reach totals of $100,000 without affecting Supplemental Security Income. Lifetime balance limits for the various state ABLE accounts can range from around $300,000 to over $500,000. Theyāre administered by state treasurers, and the vast majority can be set up online via their websites. Some ABLE plans accept paper applications as well.
Anyone can contribute to an ABLE account ā including the account owner, friends, family, organizations, nonprofits, and employers ā up to $19,000 per year in 2025. If the account owner is able to work and not already contributing to a workplace retirement plan, they can contribute an additional amount equal to their yearly gross income. For 2025, that amount is up to an additional $15,560 to $18,810, depending on the state administering the account.
There are also tax advantages. Investment earnings from ABLE accounts remain untaxed as long as money taken from the account is used for āqualified disability expenses,ā such as medical treatment, education, tutoring and job training. Account holders may choose from a number of investment options for the funds in their accounts or hold and save the money without investing it further.
Elliot said raising awareness of the accounts is the biggest challenge for the National Association of State Treasurers (NAST), for which heās also the secretary treasurer.
āMany people are used to the idea that, āIf I have a disability or my child has one, it could endanger their benefits to save money,āā he said. āWe as a state and as a country need to start reaching out to people and saying, āLook, you actually can save money now. You could save towards the purchase of a home.ā The hardest thing right now is getting that message out. We need more people to be aware things have changed.ā
According to NASTās data, just 186,641 ABLE accounts existed at the end of 2024, despite an estimated 8 million people qualifying. When the age limit is raised, the accounts will also become available to people whose disabilities may have been the result of an accident in adulthood or developed later in life, such as after a COVID infection.
Andrew Warren, senior associate for policy and research at the Financial Health Network, who studies the financial circumstances of Americans with disabilities, said that the vast majority of peopleĀ surveyed for a 2023 report by the organizationĀ did not know these accounts existed.
āLess than 1% of eligible individuals have these accounts,ā Warren said. āOur research show that one of the major barriers to becoming financially healthy for this vulnerable group is asset limits. But thereās an information disconnect between caseworkers and direct services providers on the ground and (administrators of ABLE accounts).ā
Two online resources āĀ ABLE TodayĀ and theĀ ABLE National Resource CenterĀ ā can guide you through questions to determine if you or a friend or family member qualifies.
