Everything You Need to Know About ABLE Accounts in 2025
Introduction: Why ABLE Accounts Are a Game-Changer for Disability Savings
If you receive Supplemental Security Income (SSI), you may already know about the strict $2,000 asset limit that prevents you from saving too much money. Exceeding this limit could cause you to lose your benefits, making it difficult to build financial security.
This is where ABLE accounts come in. With an ABLE account, you can save money beyond the $2,000 limit without affecting your SSI benefits.
In this guide, we’ll cover:
✅ What an ABLE account is and how it works
✅ Who qualifies for an ABLE account
✅ ABLE accounts vs. Special Needs Trusts
✅ How Purple is integrating ABLE savings into its platform
Let’s dive in!
What Is an ABLE Account?
An Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account that allows individuals with disabilities to save money beyond SSI’s asset limit without losing benefits.
Key Benefits of ABLE Accounts:
Save up to $18,000 per year (2025 limit) without affecting SSI
Money in the account does NOT count toward the SSI $2,000 resource limit (up to $100,000)
Funds grow tax-free when used for qualified expenses
Can be used for housing, education, medical costs, and more
This makes ABLE accounts one of the best financial tools for people on disability benefits.
Who Is Eligible for an ABLE Account?
To qualify for an ABLE account, you must:
✔ Have a disability diagnosed before age 26 (this will increase to age 46 in 2026)
✔ Be eligible for SSI, SSDI, or meet other disability criteria
✔ Be a U.S. citizen or legal resident
If you meet these requirements, you can open an ABLE account regardless of your income.
What Can You Use ABLE Account Funds For?
ABLE accounts must be used for Qualified Disability Expenses (QDEs), which include:
✅ Housing & Rent (Unlike regular savings, these funds won’t count against SSI limits)
✅ Medical & Dental Expenses (Including therapy, medications, and assistive devices)
✅ Education & Training (College, job training, and special education)
✅ Transportation (Public transit, car payments, and ride-sharing)
✅ Basic Living Expenses (Groceries, utilities, and personal care items)
💡 Pro Tip: If you withdraw funds for non-qualified expenses, you may face a tax penalty and SSI reductions.
ABLE Accounts vs. Special Needs Trusts: Which Is Better?
Both ABLE accounts and Special Needs Trusts (SNTs) help individuals with disabilities save money while protecting benefits. However, they work in different ways.
An ABLE account is controlled by the individual and allows flexible spending on a variety of everyday expenses. However, there is a Medicaid payback rule, meaning that if the account holder passes away, any remaining funds may be used to repay Medicaid expenses.
A Special Needs Trust (SNT) is managed by a trustee, usually a parent, guardian, or financial professional. While it does not have a Medicaid payback requirement, the trustee controls how the money is spent, and it is generally more restrictive than an ABLE account.
💡 Best Approach? Many individuals use both—an ABLE account for daily expenses and an SNT for long-term financial security.
FAQs About ABLE Accounts
Do ABLE Accounts Affect My SSI Benefits?
No! Savings in an ABLE account do not count toward SSI’s $2,000 asset limit (up to $100K).
What Happens to My ABLE Money If I Pass Away?
Medicaid may claim leftover funds, but Special Needs Trusts can help protect assets.
Can I Have an ABLE Account and a Regular Bank Account?
Yes! It’s smart to use both—your bank account for everyday spending and an ABLE account for long-term savings.
How Can I Maximize My ABLE Account?
✔ Set up automatic deposits
✔ Only withdraw for qualified expenses
✔ Compare state programs to get the best benefits
Conclusion: ABLE Accounts Empower Disability Financial Freedom
ABLE accounts offer a powerful way to save money without risking SSI benefits. With tax-free growth, flexible spending, and high contribution limits, they provide financial security for people with disabilities.
💜 Sign up for Purple to Get Early Access to ABLE Savings!