ABLE accounts: save without losing benefits
An ABLE account lets a person with a disability save money and still keep SSI and Medicaid. The rules got better on January 1, 2026.
What an ABLE account is
An ABLE account is a savings and investment account for a person with a disability. The person owns it. Money in it grows tax free and can be spent tax free on disability-related expenses. It does not count against the SSI savings limit, up to $100,000.
Who can open one
- Since January 1, 2026: anyone whose disability started before age 46 (it used to be before 26).
- The person must get SSI or SSDI because of that disability, or have a doctor's note that meets the rules.
- Each person can have one ABLE account. There is no income limit.
- A parent, guardian, or person with power of attorney can open it for them.
The 2026 rules
- Anyone can put money in: the person, family, friends, or an employer. Total yearly deposits in 2026: $20,000.
- ABLE to Work: an account owner who works and does not put money into a work retirement plan can add more from their own pay, up to $34,064 in 2026 in most states (more in Alaska and Hawaii).
- SSI: the first $100,000 does not count. Above that, the SSI check is paused, not ended, until the balance drops. Medicaid keeps going.
- Rollovers: money from a 529 college savings account can be moved into an ABLE account, within the yearly limit.
- Saver's tax credit: working owners who save in their own account may get a federal tax credit.
- After the owner dies, some states can ask for money back for Medicaid costs. Several states do not. Check your plan.
What the money can pay for
"Qualified disability expenses" is broad. It includes housing and rent, food, transportation, education and job training, health care, therapies, personal support, assistive technology, legal fees, and funeral costs.
A tip about rent. Money taken out for housing should be spent in the same month. If it sits in a checking account into the next month, SSI may count it.
How to open one
- Compare plans. You can open an account in any state's plan that takes out-of-state people. Your own state's plan may give a state tax break.
- Open online in about 20 minutes. You need the owner's Social Security number and a way to make the first deposit.
- Tell Social Security about the account if the owner gets SSI.
- Keep receipts for what you spend.
ABLE National Resource Center compares every state plan.
Last reviewed: October 2026. Laws, dollar amounts, and program rules change. Check with the agency named on this page before you make a decision.