ABLE accounts

ABLE accounts are special savings and investment accounts for eligible people with disabilities, designed to allow money to be set aside for disability-related expenses in a tax-advantaged way.

Eligibility is tied to disability onset rules under federal law. Current materials explain that eligibility includes people whose disability began before age 46.

Families use ABLE accounts because they can provide a practical place to save money for disability-related expenses while preserving access to important public benefits.

ABLE accounts may be easier to use for routine expenses and more direct day-to-day spending. Special needs trusts may be more useful for larger amounts. Many families use both.

Qualified disability expenses can include health, housing, education, transportation, assistive technology, personal support, and other areas that support health, independence, or quality of life.

Contribution limits apply and can change over time. State ABLE plans differ in fees, investment choices, residency rules, and account features.

ABLE rules can change, and the effect of an ABLE account can depend on the person's benefits, income, and financial situation. Verify current details with the official ABLE program.