ABLE Accounts in the US: A Guide for Families of Autistic Children and Adults

ABLE account vs a regular savings account

The main difference is that an ABLE account lets a disabled person keep savings without losing their benefits. Social Security's resource limit for SSI is $2,000 for an individual, and money in an ordinary account counts towards it. ABLE money is treated differently.

An example: a $5,000 gift

Sam is 22, autistic, and receives SSI. His grandmother wants to give him $5,000 for a laptop, driving lessons and a deposit on an apartment. The example is illustrative; the rules behind it are set out in the sections below.

• Into a regular savings account: cash from relatives counts as income for SSI, so the gift can reduce that month's payment. If the money is still there the following month, Sam's savings are above $2,000 and his SSI stops until he spends them down, which can also end the Medicaid that comes with it.
• Into an ABLE account: the gift is not Sam's income, the balance is well under $100,000, and his SSI and Medicaid carry on as normal. He spends the money on qualified disability expenses when he is ready.

Who qualifies

A person qualifies if their blindness or disability began before their 46th birthday. Before January 1, 2026, the condition had to begin before age 26.

A child or adult does not need to be on SSI. Eligibility can be shown through a qualifying benefit or through a disability certification, and each person can have only one ABLE account at a time.

• Receiving SSI because of blindness or a disability that began before 46, including while SSI is paused only because of excess income or resources.
• Receiving Social Security disability insurance, childhood disability benefits, or disabled widow's or widower's benefits based on blindness or a disability that began before 46.
• A disability certification: a physician signs a diagnosis, and the person certifies that the condition causes marked and severe functional limitations and has lasted, or is expected to last, at least 12 months, or can be expected to result in death.
• If the person cannot open the account themselves, IRS Publication 907 lists who can, in order: an agent under a power of attorney, then a conservator or legal guardian, then a spouse, parent, sibling, grandparent or representative payee. Only the person with the disability has an interest in the money.

How much can go in

The yearly limit covers everything put in by anyone that year: the owner, parents, grandparents, friends, a special needs trust, or money rolled over from a 529 college savings plan.

• The $20,000 figure is the IRS's inflation-adjusted ABLE limit for 2026.
• ABLE to Work lets a working owner add some of their own earnings on top of the $20,000. It is not available in a year when the owner or their employer contributes to a 401(k), 403(b) or 457(b) plan for them. The IRS sets the extra amount at the one-person poverty line.
• Each state sets a maximum total balance for its plan, in line with its 529 college plan limit; check the plan you choose.

What the money can pay for

ABLE money is meant for qualified disability expenses, and Social Security lists the categories below. If a withdrawal is spent on anything else, the earnings part of it counts as taxable income for that year, and the tax on it is increased by 10%.

For someone on SSI, housing needs care. Housing expenses are rent, mortgage payments, property taxes, utilities and garbage removal; food counts as a basic living expense. A housing withdrawal kept past the end of the month it was taken out counts as a resource for SSI, while withdrawals for other qualified expenses do not. Keep receipts for every withdrawal.

• Education
• Housing
• Transportation
• Employment training and support
• Assistive technology and related services
• Personal support services
• Health
• Prevention and wellness
• Financial management and administrative services
• Legal fees
• ABLE account oversight and monitoring
• Funeral and burial
• Basic living expenses

How it affects SSI and Medicaid

The first $100,000 in an ABLE account does not count towards the SSI resource limit, and withdrawals are not income; they are treated as savings changing form.

An ABLE account also matters for a child who is not on SSI yet. For a child under 18 living with their parents, Social Security counts part of the parents' income and resources; that stops at 18. From then on only the young person's own income and savings count, so savings held in their name in an ordinary account could keep them from qualifying.

• Above $100,000: if the ABLE balance alone puts the person over the resource limit, SSI payments are suspended, not ended, for as long as the person stays otherwise eligible.
• Medicaid: during that suspension the person remains eligible for Medicaid. If other savings also cause the excess, Medicaid stops, and SSI eligibility ends after 12 months of suspension.
• Contributions from other people are not the owner's income.
• Medicaid payback: when the owner dies, remaining money goes first to outstanding qualified expenses, including funeral and burial costs. The state can then file a claim to be repaid for Medicaid the owner received. The ABLE National Resource Center notes that only Medicaid received after the account was opened is counted, less any Medicaid buy-in premiums paid, and that some states limit payback for owners who used their own state's plan.

Taxes

Federal tax rules are the same in every state; state tax treatment varies, so check with a tax professional for your situation.

• Contributions are not tax-deductible on federal returns, and they must be made in cash or cash equivalents.
• Withdrawals spent on qualified disability expenses are tax-free.
• For withdrawals beyond qualified expenses, the earnings part is included in income, and the tax on it is increased by 10%.
• Saver's Credit: an owner who makes eligible contributions to their own ABLE account may claim it on Form 8880. For the 2025 tax year it was worth up to $1,000 ($2,000 on a joint return); the owner had to be born before January 2, 2008 and not a full-time student, and the income limit for a single filer was $39,500.
• Some states give a tax deduction or credit for contributing to their own state's plan.

How to open an account

Each state runs its own ABLE program, and most accept residents of other states. A person can have only one account, but it can be moved to another state's plan later.

1. Confirm eligibility: Check that the disability began before age 46, and that the person either receives a qualifying benefit or can get a physician's signed diagnosis for a certification.
2. Gather the details: Have the owner's identification details ready, along with their benefit details or the physician's signed diagnosis.
3. Start with your home state's plan: Your own state's plan may offer a state tax deduction or credit, and some states limit Medicaid payback for owners who use their plan.
4. Compare other plans: Most plans accept out-of-state residents. Compare fees, investment and cash options, and features such as a debit card. The ABLE National Resource Center has a review page for each state's plan.
5. Apply and keep records: Apply through the plan you choose. Keep receipts for every withdrawal, and keep the physician's diagnosis on file if you used a certification.

ABLE account or special needs trust?

A special needs trust is the other common way to hold money for a disabled person without it counting against SSI. The two can work together: a trust can contribute to an ABLE account within the yearly limit. Trusts have legal requirements that vary by state, so speak to a lawyer who works on special needs planning before setting one up.

What this page does not decide

This page summarises federal rules from the IRS and Social Security. It is not legal, tax or financial advice, it does not compare or recommend state plans, and the dollar amounts change every year.

Before large contributions, or before setting up a trust, check the current figures with the IRS and your state plan, and speak to a benefits adviser or a lawyer who works on special needs planning.

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