ABLE Accounts: Eligibility, Contributions, and How to Get Started
ABLE (Achieving a Better Life Experience) accounts let eligible individuals save and invest with tax advantages while protecting benefits. This guide explains who qualifies, how contributions work, what expenses are qualified, and how ABLE interacts with SSI and Medicaid.
Key Points
- Eligibility requires disability onset before a certain age.
- Qualified Disability Expenses (QDEs) include housing, transport, and tech.
- Contributions have annual limits; workers may contribute more.
- Many states allow non-residents to open accounts.
Who Qualifies
- Disability onset age requirement.
- SSI/SSDI determination or self-certification with documentation.
Contributions & Withdrawals
- Annual limits; family/friend contributions.
- Rollovers allowed in some cases.
- Keep receipts for QDEs.
Interactions with Benefits
- ABLE balances excluded within limits.
- Report activity to avoid overpayments.
Choosing a Plan
Compare fees, investments, and accessibility features.
How to Open
- Compare plans online.
- Gather eligibility proof and ID.
- Enroll, set contributions, and link bank account.
- Enable alerts and security.
FAQs
Can I open in another state?
Yes, many programs accept non-residents.
What counts as a QDE?
Broad categories supporting independence.
How do ABLE accounts affect SSI?
Balances and withdrawals follow special rules.
Can family contribute?
Yes—up to annual limits.