What Is an ABLE Account? A Guide for People with Disabilities
- Purple
- Aug 20
- 3 min read
If you’re living with a disability or supporting someone who is, you’ve likely heard the term ABLE account—but what exactly is it, and how does it work?
This article will cover:
What an ABLE account is
Who qualifies
How much you can save
How funds can be used
How it protects your SSI and Medicaid
How to open one and what to look for
Let’s break it down.
1. What Is an ABLE Account?
An ABLE account—short for Achieving a Better Life Experience—is a tax-advantaged savings account for people with disabilities. It allows eligible individuals to save money without risking their access to government benefits like SSI and Medicaid.
It’s similar to a 529 college savings plan, but it’s designed for disability-related expenses.
ABLE accounts were created under the ABLE Act of 2014 to help people save for the future without being penalized by the government’s strict asset limits.
2. Who Is Eligible?
To open an ABLE account, you must:
Have a qualifying disability that began before age 26
Be eligible for SSI, SSDI, or have a signed disability certification
Be a U.S. citizen or legal resident
Even if you’re no longer receiving SSI or SSDI, you may still qualify if your condition began before 26.
⚠️ A new bill in Congress—the ABLE Age Adjustment Act—could raise the age limit to 46. Stay tuned for updates.
3. How Much Can You Save in an ABLE Account?
As of 2025, you can save:
Up to $19,000 per year (combined contributions from you, family, or others)
An additional $15,060 if you’re working and not enrolled in a retirement plan (ABLE to Work provision — higher limits in Alaska and Hawaii)
The total balance can grow up to $100,000 without affecting SSI. Once the account exceeds that amount, SSI may be suspended, but Medicaid remains protected regardless of the balance.
4. What Can ABLE Funds Be Used For?
ABLE accounts must be used for qualified disability expenses. These include:
Housing and rent
Food and groceries
Transportation
Health care and dental
Education or job training
Assistive technology
Legal fees
Basic living expenses
Funeral and burial costs
The IRS allows a wide range of uses as long as the expenses relate to your disability and help you maintain health, independence, or quality of life.
5. Will an ABLE Account Affect My SSI or Medicaid?
This is the biggest benefit of an ABLE account: it allows you to save without losing benefits.
Normally, having more than $2,000 in your name can disqualify you from programs like SSI and Medicaid. But funds in an ABLE account don’t count toward that limit—up to $100,000.
That means you can build savings for emergencies, plan for the future, and take more control of your finances—without the fear of losing your support.
6. How to Open an ABLE Account
ABLE accounts are managed by state-run programs, but you can open one from any state that accepts out-of-state residents.
When choosing a plan, consider:
Monthly or annual fees
Investment options and returns
Debit card or spending features
Online access and mobile tools
State-specific benefits (like tax breaks)
Purple is actively working to make ABLE accounts even easier to access. If you’d like a modern, disability-first experience to manage your ABLE savings in the future, stay tuned.
The Bottom Line
ABLE accounts give people with disabilities more control over their money. You can save, spend, and plan ahead—without losing benefits.
If you’re eligible, opening an ABLE account could be one of the most important financial decisions you make.