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Disabled? Take Advantage of ABLE Accounts

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

  • 2020 National Disability Institute report “The Extra Costs of Living with a Disability in the U.S.”
    • https://www.nationaldisabilityinstitute.org/wp-content/uploads/2020/10/extra-costs-living-with-disability-brief.pdf
      • Related column excerpt:
        • “It takes compassion to care for a disabled family member. It also takes time, which can affect the family’s household finances. That’s the conclusion of the 2020 National Disability Institute report ‘The Extra Costs of Living with a Disability in the U.S.’: A household that contains an adult with a disability that limits the person’s ability to work ‘requires, on average, 28 percent more income … to obtain the same standard of living as a similar household without a member with a disability.’”
  • Congress.gov: H.R. 5771
    • https://www.congress.gov/bill/113th-congress/house-bill/5771  
      • Related column excerpt:
        • “There is a tax-free savings vehicle that can help. Created about 10 years ago through the Achieving a Better Life Experience Act of 2014, the ‘ABLE’ can help families save and invest. The ABLE is a sleeper: The Social Security Administration (SSA) blog ‘ABLE Act -- 10 Years of Progress for People With Disabilities’ notes that ABLE accounts are used by an estimated 3% of eligible people, adding that ‘a lack of knowledge about ABLE’s existence is the biggest barrier to participation.’”  
  • Social Security Administration: “ABLE Act – 10 Years of Progress for People With Disabilities”
    • https://blog.ssa.gov/able-act-10-years-of-progress-for-people-with-disabilities/
      • Related column excerpt:
        • “There is a tax-free savings vehicle that can help. Created about 10 years ago through the Achieving a Better Life Experience Act of 2014, the ‘ABLE’ can help families save and invest. The ABLE is a sleeper: The Social Security Administration (SSA) blog ‘ABLE Act -- 10 Years of Progress for People With Disabilities’ notes that ABLE accounts are used by an estimated 3% of eligible people, adding that ‘a lack of knowledge about ABLE’s existence is the biggest barrier to participation.’”  
  • ABLE NRC: “About ABLE Accounts”
    • https://www.ablenrc.org/what-is-able/what-are-able-accounts/
      • Related column excerpts:
        • “ABLE ‘allows a person whose disability began before age 26 to save money in the ABLE account without affecting most federally funded benefits based on need,’ states the ABLE National Resource Center (NRC) website. And, effective Jan. 1, 2026, the disability onset age is expanding from age 26 to 46.”
        • “How is the required severity of disability determined? The applicants ‘(1) … are receiving Supplemental Security Income payments or Social Security Disability Insurance Benefits; OR (2) their licensed physician signs a document including the diagnosis and stating that they have ‘marked and severe’ functional limitations which began before age 26,’ quoting the ABLE NRC webpage ‘About ABLE Accounts.’”
  • ABLE NRC FAQS
    • https://www.ablenrc.org/frequently-asked-questions/
      • Related column excerpt:
        • “An ABLE account may be helpful with exclusion tests, some of which are as low as $2,000. That is, ‘Many [public] benefits require meeting a means test that excludes the eligibility of individuals with more than $2,000 in liquid assets/resources,’ according to the ABLE NRC FAQs webpage.”
  • ABLE NRC: “ABLE Account Contribution Limits”
    • https://www.ablenrc.org/able-account-contribution-limits-2025/
      • Related column excerpt:
        • “There are annual contribution limits for ABLE accounts --  for 2025, it is $19,000. However, an account owner ‘who resides in the continental U.S. and who works and does NOT participate in an employer sponsored retirement plan … may contribute up to an additional $15,060,’ states the ABLE NRC webpage ‘ABLE Account Contribution Limits (2025),’ making the total amount $34,060. Residents of Alaska and Hawaii have slightly higher additional limits.”
  • Social Security: “Payee and ABLE accounts”
    • https://www.ssa.gov/payee/able_accounts.htm
      • Related column excerpt:
        • “What if the funds are used for a non-QDE item? ‘A portion of the investment earnings included in the distributed funds will be includible in income and subject to a 10% additional tax,’ quoting the SSA webpage ‘Payee and ABLE accounts.’”
  • ABLE NRC: “Compare State Programs”
    • https://www.ablenrc.org/compare-states/
      • Related column excerpt:
        • “What do you do if you want to open an ABLE? Start with research to decide on which state’s plan is best for you. Use the ABLE NRC’s ‘Compare State Programs’ tool. By law, an ABLE account can only be set up through a state program.”  
  • YouTube: “Achieving a Better Life Experience with an Able Account”