Understanding ABLE Accounts: Empowering Individuals with Disabilities to Save

Paul Safarik, a 32-year-old resident of Lincoln, Nebraska, epitomizes resilience and independence. With over a decade of experience in the food industry, he has successfully balanced work and personal goals, such as purchasing a treadmill and investing in dental braces. Notably, his ability to save money is supported by an innovative financial tool designed for individuals with disabilities: the ABLE account.

What is an ABLE Account?

Established by the Achieving a Better Life Experience Act of 2014, ABLE accounts allow individuals with disabilities to save money without jeopardizing their government benefits, such as Supplemental Security Income (SSI) and Medicaid. Prior to this legislation, individuals faced a strict asset limit of $2,000; exceeding this amount could lead to a loss of vital assistance. With an ABLE account, as highlighted by Deb Safarik, Paul’s mother, the financial landscape is significantly less daunting, enabling her son to work and save with peace of mind.

Expansion of Accessibility

Since their inception in 2016, ABLE accounts have been available to individuals diagnosed with disabilities before the age of 26. A forthcoming change in 2026 will extend eligibility to those diagnosed before age 46, broadening access to approximately 6 million additional individuals, including veterans. Indiana State Treasurer Daniel Elliott emphasizes the positive impact of this amendment, stating, “The fact that it used to be that individuals could only save up to $2,000 or they could lose benefits — that was really restricting a lot of families.” Currently, the average balance in ABLE accounts ranges from $11,000 to $12,000.

Financial Growth and Benefits

ABLE accounts allow individuals to save up to $100,000 without affecting their SSI benefits, with total lifetime contribution limits varying between $300,000 and over $500,000, depending on state regulations. Setting up these accounts can be done conveniently online. Notably, anyone can contribute to an ABLE account—friends, family, organizations, and even employers are permitted to add funds annually, up to a limit of $19,000 in 2025. For account holders who are employed and not participating in a workplace retirement plan, an additional contribution based on their gross income can be made, ranging up to $18,810 depending on the state.

Utilizing Tax Benefits

One of the significant advantages of ABLE accounts is the tax exemption on investment earnings, provided the funds are utilized for “qualified disability expenses,” which encompass medical treatments, educational assistance, job training, and more. This financial structure not only empowers individuals to save but also offers various investment options to help grow their funds.

Challenges and Awareness Initiatives

Despite their advantages, awareness of ABLE accounts remains a considerable hurdle. According to Elliot, “Many people are used to the idea that, ‘If I have a disability or my child has one, it could endanger their benefits to save money.'” The National Association of State Treasurers (NAST) is actively working to disseminate information about these accounts, especially amidst upcoming changes that will allow individuals with disabilities resulting from adult accidents or later-life health issues to qualify for ABLE accounts.

Currently, approximately 186,641 ABLE accounts exist, which starkly contrasts with the estimated 8 million potential beneficiaries. Andrew Warren from the Financial Health Network notes, “Less than 1% of eligible individuals have these accounts.” This highlights a significant information gap that needs addressing within communities to promote financial independence among those with disabilities.

Eligibility and Getting Started

To ascertain eligibility for an ABLE account, individuals can refer to resources like ABLE National Resource Center and ABLE Today. To qualify, an individual must have a disability that began before the age of 26 and must meet one of the following criteria:

• Be eligible for SSI or Social Security Disability Insurance (SSDI) because of the disability.
• Have a disability diagnosed by a qualified medical professional.

As of 2026, the age limit will extend to 46, inviting a new group of individuals to benefit from these accounts.

Preparing for the Future

For those who anticipate qualifying for an ABLE account, there are steps to prepare from now until the expanded eligibility kicks in. Educating oneself about how to set up an account and understanding the contributions from family and friends can facilitate a smooth process starting January 2026. This proactive approach can help ensure financial stability and growth for individuals entering this supportive framework.