An ABLE account is a tax-advantaged savings account available to individuals with disabilities. Created under the Achieving a Better Life Experience Act of 2014, these accounts allow people with qualifying disabilities to save money without losing eligibility for government benefits like Medicaid and Supplemental Security Income. Before ABLE accounts existed, individuals receiving SSI could not hold more than $2,000 in assets without risking their benefits. ABLE accounts changed that by creating a protected savings vehicle that does not count against those limits, up to a certain threshold. To learn more about how the program is structured, the Social Security Administration provides a helpful overview of ABLE account eligibility and rules.
Who Qualifies for an ABLE Account
Eligibility is tied to the onset of a qualifying disability. Specifically, the individual must have developed a significant disability before age 26. The age of onset requirement was recently expanded under the SECURE 2.0 Act, moving the cutoff from age 26 to age 46 for accounts opened after December 31, 2025, which opens the door for a much larger group of people. Qualifying conditions generally include:
- Blindness as defined by Social Security
- Any condition that results in marked and severe functional limitations
- A diagnosis that is on the SSA’s list of compassionate allowances
The account holder does not need to be currently receiving SSI or Medicaid to qualify, though those are the most common situations where ABLE accounts come into play.
How ABLE Accounts Work
Contributions to an ABLE account can come from the account holder, family members, or anyone else who wants to contribute. Annual contribution limits apply, and the funds can be used for a wide range of disability-related expenses, including:
- Education and job training
- Housing costs
- Transportation
- Assistive technology
- Healthcare not covered by insurance
- Basic living expenses
The funds grow tax-free, and withdrawals used for qualified disability expenses are also tax-free. Each state administers its own ABLE program, and account holders are generally not limited to their home state’s program. A special needs planning lawyer can walk through how these accounts interact, what contribution limits apply in a given year, and how to structure a trust so it complements rather than conflicts with the ABLE account.
How an ABLE Account Pairs With a Special Needs Trust
This is where the planning gets more precise. A special needs trust and an ABLE account serve related but distinct purposes, and using them together often makes the most sense. A special needs trust is designed to hold assets for a person with disabilities without disqualifying them from government benefits. It can hold larger sums than an ABLE account, can receive inheritances and legal settlements, and offers significant flexibility in how funds are managed and distributed by a trustee.
An ABLE account, on the other hand, gives the beneficiary more direct control over their own funds. That independence matters for people who are capable of managing day-to-day expenses but still need to stay within public benefit limits. Used together, a special needs trust can actually transfer funds into an ABLE account each year, allowing the beneficiary to have accessible money for routine expenses while the trust holds larger assets for long-term needs. This approach gives families a more complete planning structure.
Why This Planning Decision Deserves Careful Thought
These are not one-size-fits-all tools. The right combination depends on the individual’s disability, the amount of assets involved, the benefits they receive, and their level of independence. At Estate Planning Pros, the goal is always to build a plan that protects both financial security and quality of life, now and into the future. If you have a family member with a disability and want to understand how these tools fit into a broader estate plan, reaching out to an attorney who works in this area is a strong first step.