If you have an ABLE account and you're working, you may be able to save significantly more than the standard annual contribution limit. The ABLE to Work provision lets employed individuals with disabilities contribute additional funds—helping you build real financial security.
Here's how it works and how to take advantage of it.
In this article, we'll cover:
- What ABLE to Work is
- Who qualifies for the extra contribution
- 2026 contribution limits explained
- How to make ABLE to Work contributions
- Important rules and limitations
1. What Is ABLE to Work?
ABLE to Work is a provision that allows employed ABLE account holders to contribute more than the standard annual limit. It was created to help people with disabilities who are working save more money without losing their government benefits.
Under normal rules, anyone can contribute up to $18,000 per year to an ABLE account (the 2026 gift tax exclusion amount). With ABLE to Work, qualifying individuals can contribute additional funds on top of that.
This extra contribution can make a significant difference in building an emergency fund, saving for a home, or planning for future needs.
2. Who Qualifies for the Extra Contribution
To use ABLE to Work, you must meet all of these requirements:
- You have an ABLE account (and meet the age-of-onset requirement for disability before age 26)
- You are employed and earned income during the year
- You (or your employer) did not contribute to a retirement plan such as a 401(k), 403(b), or 457(b) on your behalf during the year
Important: If your employer makes any contribution to a retirement plan for you—even a small match—you do not qualify for ABLE to Work that year. This includes employer contributions to defined benefit pension plans.
Self-employed individuals can qualify if they have net earnings from self-employment and don't contribute to a retirement plan.
3. 2026 Contribution Limits Explained
Here's how the contribution limits work in 2026:
Standard limit (everyone):
- $18,000 per year (equal to the annual gift tax exclusion)
ABLE to Work additional limit:
- The lesser of your gross wages OR $14,580 (the federal poverty level for a one-person household in 2026)
Combined maximum:
- Up to $32,580 total if you qualify for ABLE to Work
Example: Sarah works part-time and earns $12,000 per year. Her employer doesn't offer a retirement plan. Sarah can contribute:
- Standard limit: $18,000
- ABLE to Work: $12,000 (her gross wages, since it's less than $14,580)
- Total: $30,000 for the year
Example: Michael works full-time and earns $45,000 per year. His employer offers a 401(k) but Michael doesn't participate, and his employer doesn't contribute on his behalf.
- Standard limit: $18,000
- ABLE to Work: $14,580 (the maximum, since his wages exceed this amount)
- Total: $32,580 for the year
4. How to Make ABLE to Work Contributions
Making ABLE to Work contributions requires some planning and documentation:
Step 1: Verify your eligibility
Confirm that you have earned income and that no employer retirement contributions were made on your behalf during the year.
Step 2: Calculate your limit
Determine how much extra you can contribute (your gross wages or $14,580, whichever is less).
Step 3: Designate contributions as ABLE to Work
When you make contributions above $18,000, you must designate them as ABLE to Work contributions. Most ABLE programs have a form or online option for this.
Step 4: Keep documentation
Save proof of your employment income (pay stubs, W-2, tax returns) and documentation that you didn't receive employer retirement contributions. You may need this if questions arise.
Step 5: Track your totals
Make sure you don't exceed your personal limit. Over-contributions can result in taxes and penalties.
5. Important Rules and Limitations
ABLE to Work has some specific rules to keep in mind:
Retirement plan exclusion:
This is the biggest limitation. Any employer retirement contribution—even a small one—disqualifies you for the entire year. If your employer auto-enrolls you or makes mandatory contributions, you may need to opt out to use ABLE to Work.
Saver's Credit:
The good news: ABLE to Work contributions may qualify you for the Saver's Credit on your federal tax return, providing additional tax savings.
State limits still apply:
Each state's ABLE program has a total account balance limit (often $300,000 or more). Once you reach that limit, no additional contributions can be made regardless of the annual limits.
SSI considerations:
Remember that ABLE balances over $100,000 affect SSI eligibility (though not Medicaid). Plan your contributions with this in mind if you receive SSI.
Important: Keep detailed records of your ABLE to Work contributions. The IRS may request documentation, and your ABLE program may need to verify your eligibility.
6. How Purple Helps You Maximize Your ABLE Savings
Purple makes it easy to manage your ABLE account and take advantage of provisions like ABLE to Work.
With Purple, you can:
- Track your contributions to ensure you stay within annual limits
- Set savings goals for specific disability-related expenses
- Monitor your balance to plan around the $100,000 SSI threshold
- Categorize spending to ensure funds go toward qualified disability expenses
- Access your money easily with a debit card for everyday purchases
- Export records for tax filing and documentation
Building financial security with a disability is challenging enough. Purple gives you the tools to save more and save smarter.