Planning guide

ABLE accounts

A tax-advantaged savings account for people with disabilities that is designed not to disrupt many benefits.

What this is

An ABLE account lets a person with a qualifying disability, or their family, save for disability-related expenses. Growth is generally tax-free when used for qualified expenses, and balances up to a limit typically do not count against SSI resource limits.

Eligibility usually depends on the disability beginning before a certain age. The age threshold has been rising, so it is worth checking the current rule.

Things to compare

Fees, investment options and minimums vary by state program.

Some states offer a tax deduction for contributions. Many programs are open to residents of any state.

Rules about what happens to the balance after the account owner's lifetime, including Medicaid payback, differ. Ask a qualified professional about this.

How it fits a continuity plan

An ABLE account can hold money the family wants to be available for housing, transportation, therapies and other daily needs, while keeping benefits intact. It often works together with a special needs trust rather than replacing one.

Questions worth asking

Does my family member qualify, and at what age did the disability begin?
Which state program has the lowest fees for us?
How much should sit in an ABLE account versus a trust?

Official source

ABLE National Resource Center ↗

Compare ABLE plans, fees and state tax benefits.

Add your ZIP code in the calculator to see your state's resource.