ABLE Accounts for Veterans: How to Save without Losing Benefits
- Purple
- Aug 8
- 2 min read
How disabled veterans can save tax-free while protecting SSI, Medicaid, and VA benefits
Introduction: Veterans Deserve Better Savings Options
If you’re a veteran with a disability, you might have heard that saving too much could cause you to lose SSI, Medicaid, or certain VA benefits.
That’s where ABLE accounts come in — a special type of savings account that lets you put money aside tax-free for disability-related expenses without affecting eligibility for most benefits.
In this post, we’ll cover:
What an ABLE account is and who qualifies
Why ABLE accounts are powerful for veterans
2025 contribution limits
How Purple makes it easy to manage both your checking and ABLE savings in one place
1. What Is an ABLE Account?
An Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account for people with disabilities.
Funds can be used for Qualified Disability Expenses (QDEs) such as:
Housing
Healthcare & assistive technology
Transportation
Education & job training
Everyday living expenses
The best part: Up to $100,000 in an ABLE account does not count toward the $2,000 SSI asset limit — and ABLE balances are excluded from VA benefit calculations.
2. Who Qualifies
In 2025, you qualify if:
Your disability began before age 26, and
You meet Social Security’s definition of disability or have a signed disability certification from your doctor.
Coming in 2026: The age-of-onset limit expands to 46, meaning more veterans will be eligible.
3. 2025 ABLE Contribution Limits
Annual limit: $19,000
ABLE to Work: If you have earned income, you can contribute extra — up to $15,060 in the continental U.S., $18,810 in Alaska, and $17,310 in Hawaii.
4. Why ABLE Accounts Are Great for Veterans
Keep your benefits: ABLE savings don’t count toward SSI or Medicaid asset limits, or most VA benefit calculations.
Tax-free growth: Earnings in the account are not taxed if used for QDEs.
Financial independence: Save for big expenses like adaptive housing or a wheelchair-accessible vehicle without fear of losing benefits.
5. How Purple Makes It Easier
Purple is a financial technology company designed for people receiving government benefits — including veterans.
💜 Track contributions so you never go over the ABLE limit.
💜 Separate accounts, one login — manage your checking account for day-to-day spending and your ABLE account for savings in one place.
💜 Smart alerts if you’re close to benefit limits.
💜 Store documents like VA award letters, SSA notices, and receipts for ABLE withdrawals.
💜 Companion AI — Your built-in financial guide for benefits questions.
Conclusion: Take Control of Your Savings
ABLE accounts are one of the best tools for veterans to build savings, stay independent, and keep benefits safe.
And with Purple, you get a checking account designed for government benefits plus tools to help you manage your ABLE savings smarter.