An Achieving a Better Life Experience (ABLE) account is a special type of savings plan designed to help individuals with disabilities and their families save for qualified expenses — without losing eligibility for important public benefits such as Supplemental Security Income (SSI) or Medicaid.
Created under the ABLE Act of 2014, these tax-advantaged accounts allow people with disabilities to build long-term financial stability, maintain independence, and prepare for future needs. Contributions grow tax-free, and withdrawals for qualified expenses are also tax-free.
The ABLE program continues to evolve, offering even greater flexibility for families and individuals managing disability-related expenses:
An ABLE account is a tax-advantaged savings account available to individuals with qualifying disabilities. Funds can be used for a wide range of expenses related to maintaining health, independence, and quality of life.
Currently, individuals whose disability began before age 26 are eligible. Starting in 2026, the age threshold increases to 46, greatly expanding access to ABLE savings for millions of Americans. The individual must also meet certain criteria under the Social Security Act or obtain certification from a qualified physician.
The annual contribution limit is $18,000 for 2025. Contributions from all sources—family, friends, or the account owner—count toward that limit.
If the beneficiary is employed and not participating in a workplace retirement plan, they may contribute an additional amount equal to their annual gross income (up to the federal poverty limit for a one-person household).
Anyone can contribute, including parents, grandparents, friends, employers, or the individual themselves. Contributions are made with after-tax dollars, but may qualify for state income tax deductions depending on the program.
Qualified disability expenses include education, housing, transportation, healthcare, assistive technology, employment training, and other costs related to improving quality of life. The list is intentionally broad to accommodate different needs.
Yes. Withdrawals used for qualified expenses are not subject to federal income tax. However, funds used for non-qualified expenses may incur taxes and penalties.
ABLE accounts are designed to protect eligibility for benefits. The first $100,000 in an ABLE account is excluded from SSI resource limits. Balances above that threshold may temporarily suspend benefits, but eligibility is not permanently lost.
Yes. An ABLE account can complement a special needs trust (SNT). The ABLE account offers more control to the individual and easier access to funds for daily expenses, while the SNT can handle larger assets or gifts without jeopardizing benefits.
ABLE accounts are portable. You can typically roll over an account to another state’s ABLE program without penalty. Each state’s plan may vary slightly in fees, investment choices, and tax advantages.
ABLE accounts are established through state-sponsored programs, many of which allow online enrollment. Individuals can compare state programs at www.ablenrc.org, which provides a directory of every ABLE plan in the U.S.
With the upcoming eligibility age expansion, more Americans will soon qualify to benefit from ABLE accounts. If you or a family member became disabled before age 46, consider planning ahead to open an account in 2026 and begin maximizing future contributions and tax-free growth potential.
While ABLE accounts are powerful tools, coordinating them with other financial strategies — such as special needs trusts, gift planning, or tax-efficient contributions — can make them even more effective.
Porte Brown’s advisors can help you evaluate how an ABLE account fits within your broader financial plan and ensure contributions align with current tax laws and benefit rules.
Illinois residents can take advantage of the Illinois Treasurer’s “IL ABLE” Program, which offers qualified individuals a straightforward way to save and invest for disability-related expenses.
Through IllinoisAble.com, account holders can:
The IL ABLE Program is part of a national alliance of state ABLE plans, providing flexibility and competitive investment options for residents across the country. It’s designed to help individuals with disabilities and their families build financial security while maintaining critical public benefits.