As a veteran with a disability, saving money can feel impossible. If you receive SSI or Medicaid, even a small savings account can put your benefits at risk. ABLE accounts change that equation—letting you save without losing the benefits you've earned.
In this article, we'll cover:
- What an ABLE account is
- Eligibility requirements for veterans
- How ABLE accounts protect your benefits
- Contribution limits and account balance rules
- What you can spend ABLE funds on
1. What an ABLE Account Is
ABLE stands for Achieving a Better Life Experience. These accounts were created by federal law in 2014 to help people with disabilities save money without jeopardizing their means-tested benefits.
An ABLE account is:
- A tax-advantaged savings account for people with disabilities
- Exempt from SSI's $2,000 asset limit (up to $100,000)
- Protected from affecting Medicaid eligibility (no limit)
- Available in most states, with some allowing nationwide enrollment
- Owned and controlled by you (the beneficiary)
For veterans, ABLE accounts offer a way to build a financial safety net while keeping SSI, Medicaid, VA pension, and other benefits intact.
2. Eligibility Requirements for Veterans
To open an ABLE account, you must meet the disability onset requirement:
Your disability must have begun before age 26
This is the key eligibility rule. If you became disabled during military service before turning 26, you likely qualify. This includes:
- Service-connected injuries sustained before age 26
- Illnesses that began during service before age 26
- Pre-existing conditions that were present before age 26
Important: The ABLE Age Adjustment Act expanded eligibility to include disabilities with onset before age 46, effective for tax years beginning in 2026. If your service-connected disability began between ages 26 and 46, you may now qualify.
You must also:
- Meet the SSA's definition of disability, OR
- Be entitled to benefits under the Blind or Disabled Child program, OR
- Have a signed disability certification from a licensed physician
If you already receive SSDI, SSI, or VA disability benefits, you likely meet the disability requirement automatically.
3. How ABLE Accounts Protect Your Benefits
Here's why ABLE accounts matter for veterans:
SSI protection Normally, SSI cuts off if your resources exceed $2,000. With an ABLE account, the first $100,000 doesn't count toward that limit. You can save substantially more without losing benefits.
Medicaid protection ABLE account balances don't count toward Medicaid asset limits at all. You could have $200,000 in an ABLE account and still qualify for Medicaid.
VA pension protection VA pension benefits have asset limits (the net worth limit is currently around $155,000). ABLE accounts generally don't count toward this limit, though you should verify with your VA benefits coordinator.
Tax advantages Earnings in ABLE accounts grow tax-free. Withdrawals for qualified expenses are also tax-free.
4. Contribution Limits and Account Balance Rules
ABLE accounts have contribution limits you need to understand:
Annual contribution limit: $18,000 (2026) This is the total amount that can be contributed by you, family, friends, or anyone else in a calendar year.
ABLE to Work bonus If you're employed, you may be able to contribute an additional amount equal to your annual wages, up to an extra $14,580 (2026). This brings the potential total to $32,580 per year.
Total account balance limits Each state sets its own maximum balance, typically between $300,000 and $500,000. Check your state's ABLE program for specifics.
SSI suspension threshold If your ABLE account exceeds $100,000, your SSI payments pause (but don't end permanently). They resume automatically when your balance drops below $100,000. Medicaid continues regardless of balance.
Important: Only one ABLE account per person is allowed. You cannot have multiple ABLE accounts in different states.
5. What You Can Spend ABLE Funds On
ABLE funds must be used for Qualified Disability Expenses (QDEs). These are broadly defined and include:
Housing
- Rent and mortgage payments
- Property taxes
- Utilities
- Home modifications for accessibility
Transportation
- Vehicle purchase and modifications
- Public transit costs
- Rideshare services
- Vehicle maintenance and insurance
Education
- Tuition and fees
- Books and supplies
- Tutoring services
Healthcare
- Health insurance premiums
- Copays and deductibles
- Medical equipment
- Therapy services
Assistive technology
- Wheelchairs and mobility devices
- Communication aids
- Computer equipment
- Adaptive software
Personal support services
- Caregiver expenses
- Home health aides
- Personal assistance
Basic living expenses
- Food and groceries
- Clothing
- Personal hygiene items
The definition of QDEs is intentionally broad. Most expenses related to maintaining your health, independence, and quality of life will qualify.
6. How Purple Helps Veterans Manage ABLE Savings
Purple makes it easy to manage your ABLE account alongside your everyday finances:
ABLE-compatible savings Open an ABLE-friendly savings account that works with your ABLE funds.
Track spending by category See which expenses qualify as QDEs and maintain records for tax purposes.
Set savings goals Create targets for specific disability-related needs, like a vehicle modification or medical equipment.
Balance monitoring Keep an eye on your account balance relative to SSI thresholds. Get alerts before you approach limits.
Easy transfers Move money between your ABLE savings and checking accounts as needed for qualified expenses.
Export records Download transaction history for tax reporting or benefit reviews.