All About ABLE Accounts

ABLE accounts are a great tool for people with disabilities to save money without losing their benefits. Starting in 2026, more people will be eligible to open an account. Read on to learn more about ABLE accounts!

What is an ABLE Account?

Achieving a Better Life Experience, or ABLE, accounts are tax-advantaged savings accounts for people with disabilities. ABLE accounts allow people to save money without impacting their public benefits that have resource limits, like SSI and Medicaid. Money saved in an ABLE account will not count toward your resource limit. ABLE accounts can function like a savings account, and many ABLE programs offer an investment option. Any growth from invested money is not taxed, but when you invest, you also have the potential to lose that money. If you’re not sure if investing is right for you, you can always start with the savings option and change to the investment option or a combination of the two later.

Who Can Open an ABLE Account?

To open an ABLE account, your disability needs to have started before you turned 26. Starting in January 2026, this age limit is increasing so anyone who became disabled before age 46 will now be eligible to open an ABLE account. You can open an ABLE account at any age; your disability just needs to have started before age 26 right now and before age 46 starting in January 2026. If you receive Social Security benefits, you can use that to show that you have a disability. If you don’t currently receive disability benefits, you will need to have your doctor fill out a form stating that you became disabled before age 26 (46 in January 2026) to open an account.

How Do I Open an ABLE Account?

Most states have an ABLE program. You can reach out to your state’s ABLE program to get started. Some states allow people who live in other states to open an ABLE account with them. If your state doesn’t have an ABLE program or if you want to explore opening an ABLE account in a different state, you can visit the ABLE National Resource Center to help you learn about and choose the program that’s right for you. Once you’ve picked the ABLE program that’s right for you, you’ll need $25 for an opening deposit. This money is not a fee, the $25 is still yours, you just have to put money into your account when you open it.

What Can I Buy With Money in an ABLE Account?

ABLE accounts are meant to pay for qualifying disability expenses. Qualifying disability expenses are items that are either related to the account holder’s disability or are for the benefit of the account holder even if it’s not directly related to their disability (you can’t buy things for other people with money in your ABLE account). This is a very broad definition and there isn’t a list of what is or is not a qualifying disability expense. It is up to the ABLE account holder to decide if something they want to pay for meets the criteria for a qualifying disability expense. Paying for education, housing, assistive technology, transportation, and medical expenses not covered by insurance are considered qualifying disability expenses, but there could be other acceptable qualifying disability expenses too! Your ABLE account could be audited (checked by the government) to make sure money is being spent on qualifying disability expenses so account holders need to keep receipts for anything they buy with money from their ABLE account.

How Much Can I Deposit Into an ABLE account?

ABLE accounts have both annual contribution limits and total account limits. The annual contribution limit is the most you can put into your ABLE account each calendar year and usually increases each year. This includes money you put in the account as well as contributions from family and friends. In 2026, the annual contribution limit is $20,000. Some ABLE account holders who are working may be eligible to make additional contributions. The additional contribution limit is either the amount you earned from working or $15,560, whichever is lower.

ABLE accounts also have account limits. Depending on which ABLE program you choose, account limits range from $235,000 – $596,925. This is the most money you can have in your ABLE account. Only the first $100,000 is not counted when determining eligibility for SSI, so if you save more than $100,000 in your ABLE account, you will lose SSI. You can save up to the account limit and still stay eligible for most other public benefit programs with resource limits. If you choose the savings option instead of the investment option, the first $250,000 in your ABLE account is FDIC insured.

Do ABLE Accounts Have Fees?

ABLE accounts have a $35 yearly fee. There may be additional fees too. For example, some accounts charge a fee if you choose to receive paper statements instead of electronic ones. If your ABLE program has a debit card, there may be a monthly fee if you choose to use the card. And if you choose to invest your ABLE funds, there may be fees related to your investments.

ABLE accounts are a great tool for people with disabilities to be able to save without losing access to their benefits. If you have questions about ABLE accounts or need support opening one, a Financial Coach at Northwest Access Fund can help!