Understanding ABLE Accounts: Empowering Individuals with Disabilities
In an effort to promote financial independence among individuals with disabilities, the Achieving a Better Life Experience (ABLE) accounts were introduced with the intent of easing restrictions on savings. These accounts have allowed people like Paul Safarik, a 32-year-old from Lincoln, Nebraska, to save money without jeopardizing essential government assistance programs.
What Are ABLE Accounts?
Established by the ABLE Act of 2014 and made available in 2016, ABLE accounts benefit individuals diagnosed with disabilities prior to age 26. Starting in 2026, eligibility will expand to those identified by a medical professional as having disabilities before the age of 46. This legislative change is projected to provide access to an additional 6 million individuals, including 1 million veterans.
Financial Benefits of ABLE Accounts
One of the primary advantages of an ABLE account is the ability for account holders to maintain savings beyond the traditional $2,000 asset limit associated with programs like Supplemental Security Income (SSI) and Medicaid. Without such accounts, individuals with disabilities face challenges in accumulating savings, often feeling compelled to avoid saving money altogether.
“With this ABLE account, we don’t have to worry as much,” said Deb Safarik, Paul’s mother. “It’s nice that he can work and save, and not have that be held against him.”
Key Features of ABLE Accounts
- Account balances may reach up to $100,000 without interfering with SSI benefits.
- State-specific lifetime limits for ABLE accounts range between approximately $300,000 and over $500,000.
- Contributions can be made by various parties up to $19,000 annually (as of 2025), with additional contributions allowed based on income.
- Account holders can choose from a variety of investment options and enjoy tax-free growth on earnings, provided withdrawals are used for qualified disability expenses such as education, housing, and medical services.
A Growing Need for Awareness
Despite these advantages, awareness surrounding ABLE accounts remains limited. Current data by the National Association of State Treasurers (NAST) indicates only 186,641 accounts were established by the end of 2024, even though around 8 million individuals qualify. Raising awareness is crucial, as many individuals and families still believe that saving money could endanger their eligibility for benefits.
“Many people are used to the idea that, ‘If I have a disability or my child has one, it could endanger their benefits to save money,’” said Daniel Elliott, Indiana State Treasurer. He emphasized the importance of informing families about their options for saving and planning for the future.
Eligibility Criteria for ABLE Accounts
To qualify, individuals must have a disability that began before the age of 26 and meet one of the following criteria:
- Be eligible for SSI or Social Security Disability Insurance (SSDI) due to their disability.
- Have a diagnosis of the disability from a licensed physician.
For relief to those who may be newly disabled due to accidents or health conditions later in life, the expanded eligibility will provide opportunities for people previously ineligible for these accounts.
Preparing for ABLE Accounts
Individuals and families anticipating qualification for an ABLE account will want to familiarize themselves with the setup process. Starting January 2026, prospective account holders and their supporters can begin allocating funds with the intent of contributing to their accounts as soon as they are set up.
Resources like the ABLE National Resource Center and ABLE Today provide guidance about eligibility and account management.
Understanding and utilizing ABLE accounts can significantly enhance the financial landscape for individuals with disabilities, offering them the means to save and plan for a secure future.
