If you receive SSI, you already know the frustration of the $2,000 resource limit — one unexpected deposit or a few months of careful saving can push you over the line and put your benefits at risk. ABLE accounts were created specifically to solve this problem. They let people with disabilities save money without losing their SSI, Medicaid, or other means-tested benefits. Here's everything you need to know about how ABLE accounts work in 2026.
In this article, we'll cover:
- What an ABLE account is and who qualifies to open one
- How much you can contribute to an ABLE account in 2026
- What you can spend ABLE account funds on (qualified disability expenses)
- How an ABLE account protects your SSI and Medicaid eligibility
- The difference between an ABLE account and a special needs trust
- How to open an ABLE account and which states offer them
What Is an ABLE Account?
An ABLE account — short for Achieving a Better Life Experience — is a tax-advantaged savings account designed for people with disabilities. Congress created the ABLE Act in 2014 to address a fundamental unfairness: the $2,000 SSI resource limit made it essentially impossible for people with disabilities to save for their future without risking their benefits. ABLE accounts carve out an exception to that rule.
Money in an ABLE account doesn't count toward the SSI resource limit up to $100,000. That means you can have $100,000 saved in an ABLE account and still qualify for SSI — a dramatic difference from the $2,000 limit that applies to regular bank accounts. The account can also grow tax-free as long as the funds are used for qualified disability expenses.
Who Qualifies for an ABLE Account?
To be eligible for an ABLE account, you must have a significant disability that began before age 26. (Note: recent legislation raised this from age 26 under the original law — some sources still reference the old age threshold, so check for the most current eligibility rules.) You generally qualify if you're already receiving SSI or SSDI based on a disability that began before age 26, or if you can self-certify that you have a qualifying disability that meets Social Security's criteria and that onset occurred before age 26.
You can only have one ABLE account at a time, but you don't have to open it in your home state. Many people shop around for the ABLE program with the best investment options and lowest fees.
How Much Can You Contribute in 2026?
In 2026, the annual contribution limit for ABLE accounts is $20,000. This includes contributions from any source — you, your family, friends, or anyone else who wants to contribute on your behalf.
There's also an additional provision called ABLE to Work that allows employed ABLE account holders to contribute above the $20,000 limit. If you're working and your employer doesn't offer a retirement plan, you can contribute an extra amount roughly equal to the federal poverty level for a one-person household — approximately $15,650 in 2026 — on top of the standard $20,000 annual limit.
These contributions aren't tax-deductible at the federal level, but some states offer a state income tax deduction for ABLE contributions.
What Can You Spend ABLE Funds On?
ABLE account funds must be used for qualified disability expenses (QDEs) — a broad category that includes almost anything related to maintaining your health, independence, or quality of life. The IRS defines QDEs to include education (tuition, books, tutoring), housing (rent, mortgage, utilities, property taxes), transportation (car payments, insurance, rideshare, public transit), employment (job training, assistive technology for work), health and wellness (medical expenses, dental, mental health, gym memberships), assistive technology (wheelchairs, hearing aids, computer equipment), personal support services (aides, caregivers), and basic living expenses.
The key phrase is "related to the individual's disability." In practice, this is interpreted very broadly. Day-to-day living expenses generally qualify as long as they support the account holder's health, independence, or quality of life.
How ABLE Accounts Protect Your SSI and Medicaid
The first $100,000 in an ABLE account is completely exempt from the SSI resource limit. If your ABLE account balance goes above $100,000, your SSI payments will be suspended (not terminated) until the balance drops back below $100,000. Critically, your Medicaid coverage continues regardless of your ABLE account balance — even above $100,000. This is a significant protection.
Also worth noting: contributions from others into your ABLE account are not counted as income for SSI purposes. So if a family member puts $5,000 into your ABLE account, it doesn't reduce your SSI check the way a direct gift of $5,000 to your bank account would.
ABLE Account vs Special Needs Trust
Both ABLE accounts and special needs trusts protect assets without jeopardizing benefits, but they work differently. A special needs trust requires an attorney to set up, involves ongoing legal and administrative costs, needs a trustee to manage it, has no annual contribution limit, and can hold unlimited assets. An ABLE account can be opened online by the individual, has lower fees, is controlled directly by the account holder (or their representative), has an annual contribution cap of $20,000, and offers more independence and simplicity.
For many SSI recipients, an ABLE account is the right first step because it's simpler, cheaper, and gives you direct control of your money. Special needs trusts are better suited for large inheritances, lawsuit settlements, or situations where more than $100,000 needs to be sheltered.
How to Open an ABLE Account
You can open an ABLE account through your state's ABLE program or through another state's program. Not every state runs its own ABLE program — following the collapse of the National ABLE Alliance in recent years, some states are in transition. However, most ABLE programs accept out-of-state residents, so you have options regardless of where you live.
To open an account, you'll typically need to verify your identity, confirm your disability eligibility (either through proof of SSI/SSDI receipt or self-certification), and choose your investment options. Most ABLE programs offer a range of investment portfolios from conservative to aggressive, plus a cash option that works like a savings account.
Some popular ABLE programs include those run by Ohio (STABLE Account), Virginia (ABLEnow), and California (CalABLE). Compare fees, investment options, and any state tax benefits before choosing.
Ready to start saving without putting your SSI at risk? Purple can help you manage your benefits and explore ABLE account options — all designed for people living on disability income.