If you receive SSI or other disability benefits and wish you could save money without risking your eligibility, an ABLE account might be exactly what you need. ABLE accounts are one of the most powerful—and most underused—financial tools available to people with disabilities. Here's how they work and why they matter.
In this article, we'll cover:
- What an ABLE account is and how it was created
- Who is eligible to open an ABLE account
- How ABLE accounts interact with SSI resource limits
- Contribution limits and investment options for 2026
- What you can spend ABLE account funds on
- How to open an ABLE account and get started
What Is an ABLE Account?
An ABLE account (Achieving a Better Life Experience) is a tax-advantaged savings account designed specifically for people with disabilities. Created by the ABLE Act of 2014, these accounts allow eligible individuals to save and invest money without jeopardizing their eligibility for means-tested benefits like SSI and Medicaid.
Think of an ABLE account as something similar to a 529 education savings plan, but for disability-related expenses. The money in the account can grow tax-free, and withdrawals used for qualified disability expenses are not taxed. Before ABLE accounts existed, the only comparable option was a special needs trust, which typically requires an attorney and ongoing legal oversight. ABLE accounts are far simpler, more accessible, and can be opened by the individual themselves.
Who Is Eligible?
To be eligible for an ABLE account, you must have a significant disability with an age of onset before age 26. This was expanded from the original age 26 requirement by the ABLE Age Adjustment Act, which raised the onset age to 46 starting in 2026. This means many more people will soon be eligible.
You can meet the eligibility requirement in one of two ways: you already receive SSI or SSDI based on a disability that began before the age threshold, or you can self-certify that you have a qualifying disability with onset before the age threshold, supported by a physician's diagnosis. Each eligible individual can have one ABLE account at a time.
You don't have to live in the state where you open your ABLE account. Many state ABLE programs accept out-of-state residents, so you can shop around for the program with the best features, investment options, and fees.
How ABLE Accounts Interact with SSI
This is where ABLE accounts become truly valuable for SSI recipients. Under normal rules, the SSI resource limit is just $2,000 for an individual. But money in an ABLE account is excluded from the SSI resource count up to $100,000. That's a massive difference. It means you can save $100,000 in an ABLE account and still be within SSI's resource rules, whereas that same money in a regular bank account would immediately disqualify you.
If your ABLE account balance exceeds $100,000, your SSI payments will be suspended (but not terminated) until the balance drops back below that threshold. Your Medicaid coverage, however, is not affected by the ABLE account balance—funds in an ABLE account are excluded from Medicaid resource calculations regardless of the amount.
It's worth noting that ABLE account funds used for housing expenses (rent, mortgage, property taxes, utilities) are treated slightly differently for SSI purposes. Withdrawals for housing costs are generally counted as unearned income in the month they're received. Other qualified disability expenses don't have this complication.
2026 Contribution Limits
In 2026, you can contribute up to $20,000 per year to an ABLE account. This is the base annual contribution limit and applies to total contributions from all sources—your own funds, family gifts, and any other contributions on your behalf.
If you're working, you may be able to contribute even more under the ABLE to Work provision. Employed ABLE account holders who don't participate in an employer retirement plan can contribute an additional amount equal to the lesser of their gross wages or the federal poverty level for a one-person household, which is approximately $15,650 in 2026. This means a working ABLE account holder could potentially contribute over $35,000 in a single year.
There's no lifetime contribution limit per se, but most state ABLE programs cap the total account balance at the same level as their 529 plan limits, which can range from $235,000 to over $500,000 depending on the state.
What You Can Spend ABLE Funds On
ABLE account funds must be used for qualified disability expenses (QDEs)—but this category is broad and covers most things you'd actually need to spend money on. Qualified expenses include education (tuition, books, tutoring), housing (rent, mortgage, utilities, property taxes), transportation (car payments, maintenance, public transit, rideshare), health and wellness (medical expenses, mental health care, gym memberships), assistive technology and personal support services, employment training and support, financial management and administrative services, and basic living expenses.
The IRS has intentionally kept this definition broad. If an expense is related to maintaining or improving health, independence, or quality of life for someone with a disability, it likely qualifies. That said, keeping receipts and records of your withdrawals is smart practice in case you're ever asked to demonstrate that funds were used for qualified purposes.
How to Get Started
Opening an ABLE account is straightforward. You can apply through your state's ABLE program or through any state program that accepts out-of-state residents. Most applications can be completed online and take about 15-20 minutes. You'll need basic personal information, proof of eligibility, and banking information for linking your accounts.
Once your account is open, you can set up direct contributions, choose from available investment options (most programs offer a range from conservative to aggressive), and start building savings that won't threaten your benefits. Many people find it helpful to set up automatic monthly contributions—even a small amount adds up over time.
An ABLE account can change what's financially possible for people with disabilities. Purple helps you manage your day-to-day benefits and banking alongside tools like ABLE accounts, so you can save for the future while staying compliant today.