A tax-advantaged savings account that lets individuals with disabilities build financial security without losing the benefits they depend on
For decades, individuals with disabilities faced an impossible choice: save money and risk losing SSI and Medicaid, or keep their savings below $2,000 and remain benefit-eligible but financially vulnerable. The ABLE Act of 2014 changed that equation.
An ABLE account — short for Achieving a Better Life Experience — is a tax-advantaged savings account specifically designed for individuals with disabilities. It allows eligible individuals and their families to save meaningful amounts of money without jeopardizing access to government benefits, providing a critical tool for financial independence and long-term planning.
An ABLE account functions similarly to a 529 college savings plan. Contributions grow tax-free, and withdrawals are tax-free when used for qualified disability expenses. The account can hold investments, and funds can be spent flexibly across a broad range of needs throughout the account holder's life.
Most importantly, ABLE account balances up to $100,000 are excluded from SSI's resource calculation. This means an individual can have $100,000 saved in an ABLE account and still receive their full SSI monthly payment — a transformational change from the old $2,000 limit that kept so many families from building any financial buffer at all.
To open an ABLE account, an individual must have a disability that began before age 26. Starting in 2026, this age limit increases to 46, significantly expanding the number of people who can benefit. Eligibility requires either receiving SSI or SSDI, or having a disability certification signed by a licensed physician.
Only one ABLE account per individual is permitted. There is no income requirement — ABLE accounts are available regardless of the account holder's income or assets beyond the account itself.
ABLE funds can be spent on a wide range of qualified disability expenses — any expense that relates to the account holder's disability and helps maintain or improve their health, independence, or quality of life:
The short answer is often both — they serve different purposes and work well together. An ABLE account is simpler, less expensive to set up, and gives the account holder more direct control over spending. A Special Needs Trust can hold unlimited assets, can be funded with life insurance proceeds, and provides more formal oversight and protection for larger amounts.
For families doing long-term estate planning, the SNT is the right vehicle for the larger funding strategy — particularly for life insurance proceeds that may be substantial. The ABLE account is ideal for ongoing, everyday supplemental expenses and smaller savings goals where flexibility and simplicity matter more than scale.
An ABLE account provides a path toward greater financial independence and long-term security for individuals with disabilities. It allows families to plan, save, and support their loved one's future needs without fear of losing essential public benefits — a simple yet transformative planning tool.
ABLE accounts are one piece of a larger strategy. We help families determine how to combine life insurance, Special Needs Trusts, and ABLE accounts into a plan that actually works for their child's lifetime.
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