What Is an ABLE Account? A Guide for People on Disability Benefits

How to save money without losing your SSI or Medicaid

Introduction: Can You Save Money on SSI Without Losing Benefits?

If you receive Supplemental Security Income (SSI) or Medicaid, you’ve probably been told you can’t save more than $2,000. That limit makes it hard to build security—especially if you’re trying to plan for emergencies, independence, or your future.

💰 So how can people on SSI save money safely?

The answer: ABLE accounts.

✔️ ABLE accounts let you save and spend money without affecting your eligibility for SSI, Medicaid, or other benefits.

✔️ They're designed specifically for people with disabilities.

✔️ They protect your savings from being counted against the $2,000 resource limit.

In this post, we’ll explain:

✅ What an ABLE account is

✅ Who qualifies and how to open one

✅ What you can spend ABLE money on

✅ 2025 contribution limits

✅ How Purple helps you track and manage ABLE savings

1. What Is an ABLE Account?

ABLE stands for Achieving a Better Life Experience. It’s a tax-advantaged savings account for people with disabilities that allows you to:

Save above the $2,000 SSI limit
Spend money on qualified disability expenses
Keep your eligibility for SSI, Medicaid, and other benefits

📌 ABLE accounts were created by the ABLE Act of 2014 and are managed by states.

💡 Funds in an ABLE account do not count toward SSI or Medicaid asset limits, up to a certain amount.

2. Who Is Eligible for an ABLE Account?

To qualify, you must:

✅ Have a disability that began before age 26 (rising to age 46 in 2026)

✅ Be eligible for SSI, SSDI, or have a qualifying diagnosis

✅ Be a U.S. citizen or resident

💡 You can only have one ABLE account, but anyone (including family or friends) can contribute to it.

3. 2025 ABLE Contribution Limits

In 2025, you can save:

💰 Up to $19,000 per year
➕ An additional $15,060 if you’re working and using ABLE to Work (continental U.S. limit)

📌 This means you could save up to $34,060/year in total if you work and use ABLE to Work.

💡 Contributions don’t count as income for SSI, and the first $100,000 in your account doesn’t count as a resource.

4. What Can You Spend ABLE Money On?

ABLE funds must be used for Qualified Disability Expenses (QDEs), which include:

🏠 Housing (rent, utilities, repairs)

🩺 Health care and therapy

🚌 Transportation (bus pass, rideshare, car repairs)

💡 Assistive technology and devices

🎓 Education and training

📞 Internet, phone, and service animals

⚖️ Legal and financial planning

💡 These expenses must relate to your health, independence, or quality of life.

📌 If you use ABLE funds for non-qualified expenses, you may owe taxes and penalties, and the money could count against SSI.

5. What Happens If My ABLE Account Reaches $100,000?

⚠️ Once your ABLE account goes over $100,000:

Your SSI payments may be suspended, but not terminated
Medicaid will not be affected
SSI resumes when your balance drops back below $100,000

💡 Most people won’t need to worry about this cap—but it’s important to track your balance.

6. How to Open an ABLE Account

ABLE accounts are offered state by state, but many allow you to enroll regardless of where you live.

✅ Steps to Open an ABLE Account:

Visit a state ABLE program (e.g., CalABLE, Ohio STABLE, etc.)
Provide:
- Proof of eligibility (e.g., SSI/SSDI award letter)
- Your personal info (SSN, ID, etc.)
Choose your investment options (or stick with a simple checking-style account)

💡 Some states charge small annual fees, and some offer debit cards linked directly to your ABLE account.

7. How Purple Helps You Use Your ABLE Account Wisely

💜 Track ABLE Contributions – See how much you’ve saved this year

💜 Stay Under the $2,000 SSI Limit – Move excess funds to ABLE before it's too late

💜 Tag Expenses as Disability-Related – Build a clean history for SSA or Medicaid reviews

💜 Store Documents and Receipts – Keep proof of qualified expenses in one place

💜 Companion AI Support – Ask, “Will this count as a qualified ABLE expense?” and get an answer instantly

📌 Purple doesn’t replace your ABLE account—it helps you use it with confidence.

8. FAQs About ABLE Accounts

⚠️ Can I open an ABLE account if I’m on SSDI but not SSI?

Yes—as long as your disability began before age 26, you qualify.

⚠️ Can I use ABLE to pay rent?

Yes—rent and utilities are qualified disability expenses.

⚠️ What happens if I spend ABLE money on something non-qualified?

You may have to pay income tax and a 10% penalty on the earnings portion of that withdrawal.

⚠️ Can I transfer money between Purple and my ABLE account?

You can link your accounts and track deposits, spending, and limits all in one place using Purple.

9. Conclusion: ABLE Accounts Make Saving Possible for People on SSI

✅ ABLE accounts let you save more than $2,000 without losing SSI or Medicaid

✅ Spend money on housing, health, and independence-related expenses

✅ Protect your benefits while planning for the future

✅ Use Purple to track, organize, and maximize your ABLE account

💜 Sign up for Purple to stay under limits, track your ABLE balance, and manage your disability benefits all in one place.