Understanding ABLE Accounts: A Game-Changer for Disabled People

What Is an ABLE Account?

Short for Achieving a Better Life Experience (ABLE) account, this financial tool was established under the ABLE Act of 2014. It allows eligible Disabled people to save and invest money for disability-related expenses without affecting their eligibility for means-tested government benefits like Supplemental Security Income (SSI) or Medicaid.

Key Benefits of an ABLE Account

1. Saving Money Without Losing Benefits – ABLE accounts allow Disabled people to save beyond the traditional $2,000 asset limit imposed by benefit programs like SSI and Medicaid. This enables long-term financial planning without fear of disqualification from crucial aid.
2. Who Can Contribute? – Anyone! The account owner, friends, family members, organizations, nonprofits, and even employers can contribute to an ABLE account, up to a $19,000 limit per year in 2025. Additionally, if the account owner is employed and not contributing to a workplace retirement plan, they can contribute extra funds equal to their annual gross income.
3. Tax-Free Growth & Withdrawals – ABLE account earnings grow tax-free, and withdrawals used for qualified disability expenses, such as housing, education, transportation, and medical costs, are also tax-free.
4. Flexible State Enrollment – Currently, 49 ABLE programs are offered in 46 states and the District of Columbia. Even if your state does not have an ABLE program, most states allow out-of-state residents to enroll.

If you think an ABLE account could enhance your financial independence, visit abletoday.org to explore programs in your state and beyond!

Who Is Eligible for an ABLE Account?

Did you know that a single date could determine whether you’re eligible for this powerful financial tool? That’s right, eligibility for ABLE accounts hinges on a few key criteria. Understanding these rules could open the door to a life-changing resource.

To qualify for an ABLE account, you must meet the following conditions:

1. Onset of Disability – Your disability must have begun before the age of 26. However, starting January 1, 2026, this age limit will increase to 46 years old.
2. Severity of Disability – Your disability must be long-term (lasting more than 12 months) and cause “marked and severe functional limitations”, as defined by the Social Security Administration (SSA).
3. Proof of Disability – You can demonstrate eligibility if you:
   
   • Receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), or
   • Have a written diagnosis from a physician confirming your disability.
4. No Benefit Requirement – You do not need to be receiving benefits to open an ABLE account. If you meet the disability criteria, you can open one at any age.
5. Assistance for Minors – If you’re under 18, a parent or guardian can open an account on your behalf.
6. Residency Rules – Most ABLE accounts are available nationwide, but it’s best to check each program’s specific residency requirements.

If you qualify, take the next step by gathering your (SSI/SSDI documentation or a physician’s certification) and researching ABLE programs.

How to Open an ABLE Account

So, you’re ready to start saving, investing, and spending without worrying about losing essential benefits? Opening an ABLE account is easier than you might think!

Steps to Open an ABLE Account

1. Research Your Options – Visit Able Today to compare ABLE programs. Many states offer tax incentives for in-state account holders, so checking local programs first is a good idea.
2. Apply Online or by Mail – Most ABLE programs allow you to enroll online in under 20 minutes, but paper applications are also available.
3. Prepare Your Documents – You will need:
   
   • Proof of disability (SSI/SSDI documentation or a physician’s certification).
   • Personal identification details (such as your Social Security number).

Key Features of ABLE Accounts

• Contribution Limits – Each year, an ABLE account holder can receive up to $19,000 in contributions (as of 2025). Employed individuals may contribute additional earnings under the ABLE to Work Act.
• Investment & Savings Options – Most ABLE programs offer 5 to 7 investment choices, including stocks, bonds, and FDIC-insured cash options. This allows individuals to choose between savings-focused or growth-focused portfolios.
• Low Fees – Account maintenance fees range from $0 to $60 annually, varying by state.
• Tax-Free Withdrawals for Disability Expenses – Funds can be used for qualified disability expenses like:
  
  • Housing
  • Education
  • Transportation
  • Medical costs
  • Job training and employment support

If an expense helps maintain or improve your health, independence, or quality of life, it likely qualifies!

An ABLE account for many can be a pathway to financial independence and security. Take charge of your future by:

1. Exploring ABLE programs at www.abletoday.org
2. Gathering your eligibility documents
3. Opening your account in as little as 20 minutes!

Disclaimer: The content in this article is for informational purposes only and is not legal advice. Please seek legal counsel for any legal questions or concerns.

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