The Achieving a Better Life Experience (ABLE) Act was passed by Congress in 2014. Yet, very few agencies working with disabled people who must live in a means-tested program such as Medicaid, Medicaid-waiver programs, and SSI, limiting them from possessing more than $2,000 at any one time, have never even heard of ABLE accounts.
“An ABLE account is a savings and / or investment option for people with disabilities who qualify. It falls under Section 529A of the Internal Revenue Service tax code. The ABLE Act allows a person whose disability began before age 26*, to save money in the ABLE account without affecting most federally funded benefits based on need. The money in the account may be used to pay for qualified disability expenses (QDEs). Any growth in the account from investments is not taxed and does not count as income if the funds are used for QDEs.” — https://www.ablenrc.org/what-is-able/what-are-able-accounts/
“Family, friends, pooled and special needs trusts may contribute to a person’s ABLE account without direct deposits counting as income. ABLE savings up to $100,000 is not counted towards resources for those who receive Supplemental Security Income (SSI). Any amount of ABLE savings is not a countable resource for FAFSA, HUD, Medicaid, Medicare or SNAP. ABLE funds may be spent on qualified disability expenses, helping the ABLE account owner to pay for items such as food, housing and other additional and often significant expenses that are often associated with having a disability.” — https://www.ablenrc.org/service-provider-toolkit/
The age in that first quote is starred because on January 1, 2026, the age before the disabling condition began is jumping a whopping 20 years, to age 46. This will allow an estimated 6 million more disabled Americans to save beyond the $2,000 limit in their pockets at any one time.
While there is a cap on annual contributions to an ABLE account (about $19,000 in 2025), if the disabled person is working, they can place a significant amount of their earnings in their ABLE account on top of that cap.
I have lived with multiple sclerosis since about the age of 12. I am in the C.L.A.S.S. (Community Living Assistance and Support Services) Program, a Medicaid-waiver program. Frankly, I am amazed and saddened that so many in the disability community and the agencies that provide services to them have never even heard of the ABLE Act.
Nearly every state offers an ABLE account; there are a handful of national ones, as well. Most are managed by the state comptroller’s office. Some state programs are limited to residents only; others are open to all. Here are some relevant links to the Texas ABLE plan: https://www.texasable.org
Also see: Texas ABLE® Program Celebrates ABLE Savings Day
Written by: Jane E. Harmon, OTR, ret; Registered Occupational Therapist and writer with a heart for people living with chronic illnesses and disabling conditions.
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