ABLE accounts are one of the most powerful financial tools for people with disabilities. They let you save money without losing SSI, Medicaid, or other benefits.
In this article, we'll cover:
- What an ABLE account is
- Who can open one
- How much you can save
- What you can spend ABLE funds on
- How to open an ABLE account
1. What an ABLE Account Is
ABLE stands for Achieving a Better Life Experience. It's a tax-advantaged savings account specifically for people with disabilities.
Key benefits:
- Save beyond SSI's $2,000 limit
- First $100,000 doesn't count toward SSI resources
- Tax-free growth on investments
- Use funds for disability-related expenses
How it works:
- Similar to a 529 college savings plan
- You (or others) contribute money
- Funds grow tax-free
- Withdraw for qualified expenses
2. Who Can Open One
Eligibility requirements:
- Disability onset before age 46
- AND one of the following:
- Currently receiving SSI or SSDI
- Meet SSA's disability criteria
- Have a condition on SSA's list of compassionate allowances
- Self-certify disability meeting SSA standards
The age 46 rule:
- Your disability must have begun before age 46
- You can open an account at any age
- The onset date is what matters
Important: Even if you don't receive SSI or SSDI, you may still qualify if your disability began before 46.
3. How Much You Can Save
Annual contribution limit:
- $18,000 per year (2026)
- Can come from you, family, or anyone
ABLE to Work bonus:
- If you work, you may contribute an additional amount
- Up to the lesser of: your gross wages or the poverty line ($15,060 in 2026)
- Can't use if employer contributes to retirement plan
Total account limit:
- Varies by state (typically $300,000-$500,000)
- Above $100,000 affects SSI (suspends, doesn't terminate)
SSI treatment:
- First $100,000 excluded from SSI resources
- Above $100,000: SSI suspended but Medicaid continues
- Account never counts for Medicaid
4. What You Can Spend ABLE Funds On
ABLE funds must be used for "qualified disability expenses" (QDEs):
Housing:
- Rent, mortgage payments
- Property taxes
- Utilities
- Home modifications
Transportation:
- Vehicle purchase or lease
- Gas and maintenance
- Public transit
- Rideshare services
Education:
- Tuition and fees
- Books and supplies
- Tutoring
Healthcare:
- Medical expenses not covered by insurance
- Dental and vision care
- Mental health services
- Prescription medications
Assistive technology:
- Wheelchairs, walkers
- Hearing aids
- Computer equipment
- Communication devices
Employment support:
- Job training
- Career counseling
- Work-related expenses
Other allowed expenses:
- Legal fees
- Financial management
- Funeral and burial
- Basic living expenses
Important: Keep receipts and records of ABLE spending in case of audit.
5. How to Open an ABLE Account
Step 1: Choose a state program
- Most states have ABLE programs
- You don't have to use your home state
- Compare fees, investment options, features
Popular programs:
- ABLE United (Florida)
- CalABLE (California)
- Ohio ABLE
- Virginia ABLEnow
Step 2: Gather documents
- Proof of identity
- Social Security number
- Proof of disability (benefit letter or certification)
Step 3: Apply online
- Most programs have online applications
- Takes 15-30 minutes
- May be approved immediately
Step 4: Fund your account
- Set up direct deposit or transfer
- Have family contribute
- Start saving
How Purple Helps
Purple integrates with ABLE accounts:
- Connect your ABLE to Purple
- Track both accounts together
- Move money to ABLE easily
- Stay under SSI limits