If you're on SSI, the $2,000 resource limit makes saving nearly impossible—but there's a little-known account type that lets you save up to $100,000 without putting your benefits at risk.
In this article, we'll cover:
- What ABLE accounts are and how they work
- Who qualifies for an ABLE account (eligibility recently expanded)
- What you can use ABLE funds for
- How ABLE accounts protect your SSI and Medicaid
- How to open an ABLE account in any state
What Is an ABLE Account?
ABLE accounts are tax-advantaged savings accounts specifically designed for people with disabilities. Created by the Achieving a Better Life Experience (ABLE) Act, these accounts allow eligible individuals to save and invest money without jeopardizing their means-tested benefits like SSI and Medicaid.
The most powerful feature? You can save up to $100,000 in an ABLE account without it counting against SSI's resource limits. For Medicaid, there's no cap at all—your entire ABLE balance is excluded when determining eligibility.
Who Qualifies for an ABLE Account?
To open an ABLE account, you must have a significant disability that began before age 46. You can qualify automatically if you receive SSI or SSDI, or by meeting Social Security's disability criteria with a physician's certification.
The age requirement recently expanded from 26 to 46, making millions more people eligible. If you were previously told you didn't qualify because your disability began after 26, check again—you may now be eligible.
What Can You Use ABLE Funds For?
ABLE account funds must be used for "qualified disability expenses," but this category is broad. It includes housing, transportation, education, healthcare, assistive technology, job training, legal fees, and much more. Essentially, any expense that helps maintain or improve your health, independence, or quality of life qualifies.
You can use your ABLE debit card for everyday purchases that relate to your disability, making the account practical for regular use rather than just long-term savings.
How ABLE Accounts Protect Your Benefits
When you have an ABLE account, the first $100,000 doesn't count toward SSI's resource limit. This means you could have $2,000 in a regular bank account plus $100,000 in your ABLE account and still maintain SSI eligibility.
If your ABLE balance exceeds $100,000, your SSI payments pause but don't terminate completely. Once your balance drops below $100,000, benefits resume. Your Medicaid continues regardless of your ABLE balance.
Opening Your ABLE Account
You can open an ABLE account through any state's program, not just your own state's. Compare programs for features like investment options, fees, and debit card availability. Many states offer low-cost programs with user-friendly online management.
Ready to save without losing benefits? Purple helps SSI recipients manage their everyday finances while tools like ABLE accounts protect your long-term savings. Open your Purple checking account.