ABLE Accounts: A Game Changer for People with Disabilities to Save Money

Last updated Mar 16, 2025

“`html

Financial Stability for People with Disabilities: Understanding ABLE Accounts

Author: Cora Lewis | Publication: Associated Press

Empowering Individuals with Disabilities through ABLE Accounts

In Lincoln, Nebraska, Paul Safarik, a 32-year-old individual with Down syndrome, is experiencing financial independence that is rare among people with disabilities. Working in quick service restaurants such as Raising Cane’s and grocery stores like Trader Joe’s, Safarik recently purchased a treadmill and offset the cost of his dental braces with his earnings.

This level of financial freedom is possible due to an ABLE account – a savings account that allows people with disabilities to save beyond the typical $2,000 asset limit tied to benefits like Supplemental Security Income and Medicaid. The ABLE account enables Safarik to save without the fear of losing government assistance.

Understanding the ABLE Account

The Achieving a Better Life Experience Act (ABLE), enacted in 2014, paved the way for the creation of ABLE accounts. These have been available since 2016 to individuals identified by a doctor as having a disability before the age of 26. The age limit is set to rise to 46 next year, extending the benefits of ABLE accounts to an additional 6 million people, including 1 million veterans.

ABLE accounts allow holders to save up to $100,000 without affecting their Supplemental Security Income. The balance limits for these accounts vary by state, ranging from approximately $300,000 to over $500,000, according to Daniel Elliott, Indiana State Treasurer.

Setting Up an ABLE Account

Throughout the U.S., ABLE accounts are overseen by state treasurers and can be easily set up online through the treasurer’s website. Contributions can be made by the account owner, family, friends, organizations, non-profits, and employers up to $19,000 per year in 2025. The account owner can also contribute additional amounts equal to their yearly gross income if they are not already contributing to a workplace retirement plan.

Investment earnings from ABLE accounts remain untaxed as long as money taken from the account is used for qualified disability expenses. This includes expenditures like medical treatment, education, tutoring, and job training. Account holders can choose from a number of investment options for the funds in their accounts or opt to save the money without further investments.

Improving Account Awareness

The biggest challenge for the National Association of State Treasurers (NAST) is raising awareness about ABLE accounts. Despite the eligibility of 8 million people nationwide, NAST’s data shows that only 186,641 ABLE accounts existed at the end of 2024. The organization aims to spread the message: ‘You can save money now. You can save towards the purchase of a home.’

Unfortunately, most Americans with disabilities and their families are unaware of ABLE accounts. A 2023 report by the Financial Health Network revealed that less than 1% of eligible individuals had these accounts. Thus, it is crucial to bridge the information gap and make ABLE accounts more accessible.

Am I Eligible for an ABLE Account?

Two online resources, ABLE Today and the ABLE National Resource Center, can help you determine if you or a loved one qualify for an ABLE account. Presently, eligibility is for those whose disability began before age 26 and people whose disability is terminal or long-term. In 2026, the age limit will rise to 46.

Preparing for an ABLE Account

By educating yourself about the process of setting up an ABLE account, you can add money and fund the account right away from January 2026. Family, friends, and organizations can also begin to set money aside, intending to contribute it to the account in the individual’s name as of January 1.

The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from