Financial well-being looks different for everyone. For individuals with disabilities and their families, financial planning often comes with extra complexity. That’s where ABLE accounts come in.
An ABLE account (Achieving a Better Life Experience) is a tax-advantaged savings account designed to help people with disabilities save for everyday living expenses without jeopardizing essential government benefits1. It’s a powerful tool for building greater independence, stability, and peace of mind.
Who Are ABLE Accounts For?
ABLE accounts are available to individuals who developed a qualifying disability before age 46. This expanded eligibility, effective January 1, 2026, allows more people to take advantage of ABLE accounts as part of their financial plan.
They’re especially helpful for people who receive, or may qualify for, Supplemental Security Income (SSI) or Medicaid, since traditional savings can sometimes reduce or eliminate eligibility for those programs.
Why ABLE Accounts Matter
Many public assistance programs limit how much money someone can save. ABLE accounts create breathing room by allowing individuals with disabilities to set aside funds without risking their benefits.
Key benefits include:
- Tax-advantaged growth: Contributions grow tax-free, and withdrawals are tax-free when used for qualified expenses2.
- Benefit protection: ABLE savings, up to certain limits, don’t count against SSI or Medicaid eligibility. SSI eligibility is protected for balances up to $100,000, and Medicaid eligibility is not impacted by higher balances1.
- Flexibility: Funds can be used for a wide range of everyday and long-term needs.
What Can ABLE Funds Be Used For?
Funds can be used for qualified disability expenses, which include—but aren’t limited to:
- Housing and utilities
- Education and training
- Transportation
- Healthcare and therapies
- Assistive technology
- Employment support
- Personal care and wellness
In short, ABLE accounts are designed to support everyday life—not just medical needs, but the full picture of independence and dignity.
Contribution Limits and Eligibility
- Open contributions: Anyone can contribute to an ABLE account—family, friends, or the account owner.
- Annual limits: Contribution limits generally align with the federal gift tax limit.
- Higher contributions for workers: Individuals with earned income may be able to contribute additional amounts2.
How ABLE Fits into a Bigger Plan
ABLE accounts are typically opened directly through the state, through that state’s ABLE program’s website and managed online. These accounts can play an important role in a broader planning conversation.
ABLE accounts work best when evaluated alongside other tools, such as special needs trusts, employer benefits, and long-term planning strategies. Understanding how these pieces fit together—and when one tool may be more appropriate than another—can make a meaningful difference over time.
At CommunityAmerica’s Special Needs Planning Center, we meet families where they are by helping them navigate life’s transitions and evaluate financial tools as part of a thoughtful, coordinated special needs plan. If you’re caring for someone with a disability, or planning for your own future, an ABLE account may be an important mile marker on your journey toward financial peace of mind.
The Special Needs Planning Center, CommunityAmerica Credit Union, and CommunityAmerica Wealth Management are not tax or legal advisors. Please speak with your tax and legal professionals regarding your specific situation.
