For most people, saving money is straightforward. For someone receiving SSI, it can feel nearly impossible. With a $2,000 resource limit hanging over every bank balance, building any kind of financial cushion seems out of reach. That's exactly the problem ABLE accounts were created to solve. If you or someone you care about has a disability, an ABLE account might be one of the most important financial tools you've never heard of.
In this article, we'll cover:
- What ABLE accounts are and how they work
- Who is eligible to open one
- How much you can contribute each year
- What the money can be used for
- How ABLE accounts interact with SSI and other benefits
- How to open an ABLE account
ABLE Accounts, Explained
ABLE stands for Achieving a Better Life Experience. Created by the ABLE Act of 2014, these are tax-advantaged savings accounts specifically designed for individuals with disabilities. The core purpose is simple: let people with disabilities save money without losing their government benefits.
ABLE accounts work similarly to 529 college savings plans. You open an account through a state ABLE program, make contributions, and the money grows tax-free as long as it's used for qualified expenses. The crucial difference from a regular savings account is that funds in an ABLE account do not count toward SSI's $2,000 resource limit — up to $100,000.
This means an SSI recipient with $95,000 in an ABLE account and $1,500 in a checking account would have countable resources of just $1,500 in Social Security's eyes. That's a life-changing difference for people who have spent years carefully keeping every dollar below the limit.
Who Is Eligible?
To open an ABLE account, you must have a significant disability with an age of onset before 46. This threshold was recently raised from age 26, opening ABLE accounts to millions more people. You can qualify in two ways: either you're already receiving SSI or SSDI based on a disability that began before age 46, or you can self-certify that you have a qualifying disability that meets Social Security's criteria with an onset before that age.
Only one ABLE account is allowed per person. The account is owned by the individual with the disability (the designated beneficiary), though family members and others can contribute to it on their behalf.
Contribution Limits
The annual contribution limit for ABLE accounts is $20,000 in 2026. This is the total amount that can be deposited in a single year from all sources combined — your own money, gifts from family, contributions from friends.
If you're employed and don't participate in an employer-sponsored retirement plan, you may be eligible for the ABLE to Work provision, which allows an additional contribution of approximately $15,650 on top of the standard $20,000 limit. This extra allowance recognizes that working individuals with disabilities should be able to save more of their earnings.
While annual contributions are capped, the account balance itself can grow well beyond $20,000 over time through contributions and investment gains. The critical threshold for SSI recipients is $100,000 — if your ABLE account exceeds that amount, your SSI payments will be suspended (though your Medicaid eligibility continues). Balances below $100,000 are completely invisible to SSI.
Qualified Disability Expenses
ABLE account funds can be used for a wide range of expenses related to maintaining or improving your health, independence, and quality of life. These are called qualified disability expenses (QDEs) and include housing, transportation, education, employment training and support, assistive technology, health and wellness costs, financial management, legal fees, and basic living expenses.
The definition is intentionally broad. A new computer for a training program, an accessible vehicle modification, rent, groceries — these all qualify. Withdrawals used for qualified disability expenses are tax-free. If you use funds for non-qualified expenses, the earnings portion of the withdrawal may be subject to income tax and a 10% penalty.
How ABLE Accounts Interact with Benefits
For SSI recipients, ABLE account balances up to $100,000 are excluded from the resource limit. Contributions to your ABLE account are not counted as income in the month you make them. Distributions used for qualified expenses are also not counted as income. This triple benefit — no resource count, no income on contributions, no income on distributions — makes ABLE accounts extraordinarily powerful for SSI recipients.
For Medicaid, ABLE accounts have no effect on your eligibility regardless of balance. Even if your ABLE account exceeds $100,000 and your SSI is suspended, your Medicaid coverage continues.
For SSDI recipients, ABLE accounts don't directly affect your benefits since SSDI has no resource limit. However, if you receive concurrent SSI and SSDI benefits, the SSI resource rules apply and an ABLE account is just as valuable.
ABLE accounts also do not affect SNAP (food stamp) benefits. The funds are excluded from SNAP's resource calculations entirely.
How to Open an ABLE Account
ABLE accounts are offered through state programs, but you don't have to use your own state's plan — most programs accept out-of-state residents. Research the available plans to find one with low fees, good investment options, and features that match your needs.
Opening an account typically involves filling out an online application, providing proof of identity, and certifying your eligibility. Some programs allow you to get started with no minimum deposit, while others require a small initial contribution. Once the account is open, you can set up regular contributions or deposit money as it becomes available.
An ABLE account is one of the most powerful tools available for people with disabilities who want to save without risking their benefits. Purple is building ABLE accounts to make saving even easier for our community.