ABLE Accounts: What You Should Know

Achieving a Better Life Experience (ABLE) Accounts are tax-advantaged savings accounts that are available to eligible individuals with disabilities. By opening an ABLE account, you may be able to save more money each year to help you pay for disability-related expenses.

But how do you open an ABLE account and what exactly can the funds be used for? In this blog post, we're answering the top three questions about ABLE accounts and how they may help you on your path to financial independence.

Who is eligible to open an ABLE account?

As of 2023, the ABLE Act limits eligibility to people with disabilities who had an onset of disability before they turned 26. As of 2026, however, the ABLE Age Adjustment Act will increase the age of ABLE eligibility to “before the age of 46”. If you meet the eligibility criteria, you may then choose the state in which you plan to open your account.

More than half of the states in the country have launched ABLE programs. You are not required to establish your account in the state where you live. To help you decide in which state you want to open an account, use the Three-State Comparison tool and review tips for opening your ABLE account. Then, visit the program website of the state you chose and complete the application. In 2023, Social Security disability beneficiaries, their family members, friends, and employers can deposit up to a combined total of $17,000.00 into an ABLE account.

What can ABLE account funds be used for?

ABLE account funds can be used for "qualified disability-related expenses" (QDE). A QDE is any expense the beneficiary incurs as a result of the disability. These may include expenses related to education, housing, transportation, employment training and support, assistive technology, personal support services, healthcare expense, financial management and administrative services, and other expenses that help improve health, independence and/or quality of life.

Although you do not need to submit receipts for the expenses, you should keep them along with other documentation of the expenditure. If you're unsure whether something is a QDE, you can check with the Internal Revenue Service (IRS), the only organization that can make that decision.

How do ABLE accounts affect my Social Security disability benefits?

If you receive SSDI, are working, and deposit part or all of your earnings into an ABLE Account, Social Security still considers this deposited money as "countable earnings" and applies Work Incentives to determine if you're engaging in substantial gainful activity (SGA). However, deposits made into an ABLE account by others, such as your family members, friends, and employers are not considered countable income for determining SGA.

However, if you receive SSI benefits, the ABLE Act sets further limitations. The first $100,000 in your ABLE account would be exempted from the SSI $2,000 individual resource limit. When your ABLE account exceeds $100,000, your SSI benefit payments would be suspended until the account balance falls below $100,000. It is important to note that while your eligibility for a benefit payment is suspended, this has no effect on your ability to receive or be eligible to receive medical assistance through Medicaid¹.

About Ticket to Work

Social Security's Ticket Program supports career development for people ages 18 through 64 who receive Social Security disability benefits (SSI or SSDI) and want to work. The Ticket Program is free and voluntary. It helps people with disabilities move toward financial independence and connects them with the services and support they need to succeed in the workforce.

Learn More

Visit the ABLE National Resource Center to learn more about ABLE accounts and for more resources, including Frequently Asked Questions, webinars and podcasts. To learn more about the Ticket Program, call the Ticket to Work Help Line at 866-968-7842 or 866-833-2967 (TTY) Monday through Friday, 8 a.m. to 8 p.m. ET. Ask a representative to send you a list of service providers or find providers on your own with the Ticket Program Find Help tool.

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