ABLE Act – 10 Years of Progress for People With Disabilities
Reading Time: 3 MinutesLast Updated: December 19, 2024
On December 19, 2024, we mark the tenth anniversary of the Stephen Beck, Jr. Achieving a Better Life Experience (ABLE) Act, which allows eligible people with disabilities to open a savings and investment account. ABLE investment growth is not taxable and is not countable income if the funds are used to pay for qualified disability expenses (QDEs).
The ABLE Act gives people with disabilities the opportunity to save and invest while maintaining eligibility for public benefits like Supplemental Security Income (SSI) and Medicaid, now or in the future. Historically, resource limits often made saving difficult for people living with a disability. ABLE accounts are one way to help bridge this gap, allowing savings for those extra costs without jeopardizing critical benefits.
Since the first ABLE program opened in 2016, ABLE account holders have saved over $2 billion in assets. As of 2024, more than 187,000 people with disabilities have opened an ABLE account, with an average of over $11,600 saved and invested in each account. ABLE participants can select from a range of options with different saving/investment limits to help them save for their personal needs. Despite this, only about three percent of ABLE-eligible individuals have opened an account. Research shows that a lack of knowledge about ABLE’s existence is the biggest barrier to participation.
ABLE accounts allow SSI recipients to hold significantly more resources (up to $100,000), which are not subject to the SSI asset limit.
According to the Social Security Administration (SSA), exceeding the resource limit is one of the main causes of SSI overpayments. If more SSI recipients used ABLE accounts, many could avoid overpayments caused when their resources exceed $2,000 (and fewer recipients would be suspended, terminated, and need to be reinstated after spending down their excess resources).
Contributions to ABLE accounts are subject to annual and cumulative limits and are treated as gifts for federal gift tax purposes. Contributions deposited into an ABLE account do not replace benefits provided through private insurances, the Medicaid program, the SSI program, the Social Security Disability Insurance (SSDI) program, the beneficiary’s employment, and other sources. Instead, and to the advantage of ABLE account participants, the funds supplement these benefits. ABLE accounts may offer savings, checking, and investment options. Funds in an ABLE account can be used to purchase qualified disability expenses, defined broadly by the IRS as something that helps the person stay healthy, independent, and have a good quality of life. Some examples include education, housing, transportation, training, funeral/burial expenses, basic living expenses, food, property taxes, rent/mortgage, and utilities. This provides flexibility for the usage of the ABLE funds, leaving it open to items or services that relate to the unique needs of each account owner.
At this time, to be eligible for an ABLE account, a person’s disability must have begun before the age of 26, although an ABLE account can be opened at any age. On January 1, 2026, the ABLE Age Adjustment Act will expand eligibility to include people who have a disability that began before age 46. This expansion will allow another six million people to be eligible for an ABLE account.
Some people may need assistance to open and manage their account and to reach their financial goals. The IRS provides a prioritized list of who may open an account on behalf of an eligible individual, starting with someone they select, followed by legal representatives, family members, and representative payees. An account opened by a representative payee appointed by the SSA must follow all Social Security account rules and regulations.
ABLE accounts promote independence and financial stability, enabling people with disabilities to save and plan for essential needs while accessing and retaining critical benefits. To learn more, refer to Social Security’s Red Book – A Guide To Work Incentives and Employment Supports for People Who Have a Disability and Spotlight on Achieving a Better Life Experience Accounts (ABLE).
This blog post is informational only and does not constitute financial advice or an endorsement of ABLE products or ABLE organizations by the Social Security Administration. There may be other financial options that could be a better fit for some individuals. You must use your best judgement to determine which option is best for your situation.
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Tags: SSI, supplemental security income
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Bridget
I this webinar to get detailed info on SSI
APRIL 2024 WEBINAR Social Security Benefits and ABLE Accounts: Representative Payees, Reporting, and More
https://www.abletoday.org/ssa
video link: https://youtu.be/ciiDaAsJo8Y
video url at exact time of SSA speaker Laurie Zelik:
https://youtu.be/ciiDaAsJo8Y?t=1581
Here is where the speaker says the opposite of what this blog claims. Is the info out dated? What is going on?
Bridget a.
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posting again as I was unable to post rather than reply to a comment. This section did not show up
This article about ABLE was attractive to me. I promoted ABLE and encourage others to open an account believing money put into the account would not affect benefits. I later attended an ABLE webinar. There was a speaker from SSA who completely confused me. She said money that you earned and deposited in ABLE will count against your benefits because SSA is a means tested program. She also stated gift money placed into your account by other persons (up to $100,000), will not count against your benefits. If this is so, it renders ABLE account holders who get SSI as beggars! Additionally this renders ABLE as a tax shelter for the rich, persons of means who have disabled children or protection only for account holders who have donor friends or relatives. What is true? This blog or what the SSA rep said in the ABLE SSI webinar? So confused. If this is true it is insulting and undignified to learn there is nothing one can do of their own power to get ahead except be dependent still. Many are working part time to improve the quality of life while on SSI. They do not all have donors. Most people on SSI do not. SSA does not want working ABLE account holders to earn monies deposited ? SSA wants you to spend every penny of the money within a month’s time? What if you have a need greater than the months income that must be saved for? Isn’t that what flexible IRAs are about? Does SSA want people to merely be dependent on gifts bestowed? Please clear this up so I can inform the community I serve in Illinois.
quacy m.
americans need to remove all elderly, old people from the nursing home for life. they need saving from the nursing home and all nurse aides
quacy m.
don’t ever have americans live at a government complex. a hospital to live at is like a government school that is uncomfortable to live at
Discrimination
What about those of us who have applied multiple times throughout their life and have been denied every time?
Bradley P.
I am a representative payee and the Care assist for my brother a major stroke surviver 4 yrs now also 4 yrs since filing for disability benefits on his behalf. Took nearly four years to obtain his benefits understand that he was hospital discharged 45 days post stroke with impairments non verbal can’t speak can’t write gesture bodily with any accuracy but poor accuracy, can’t make informed decisions, assistance dependant heavy, 24 7 supervision required, incontinent X2, discharged hospice’s approved ! For reasons only an insane world can understand my brother was denied at initial and recon stage’s WHY DID THIS HAPPEN? the letters of explanation read: “an uncooperative claimant unwilling to provide medical evidence of an alleged disability” THE DDS representative’s it’d been verified that they actually obtained All records from all 4 treating hospitals (they said they hadn’t obtained or received ANY Medical records but just two pages THEY’D GOTTEN ALL OF EM) we’d obtained from his SSA e file what DDS had obtained they obtained ALL record’s mostly inside or just after brothers 45 days post stroke discharge.
Further more these SSA records are date and time stamped verified also uploaded into their computer it’s algorithms scanning all records and matching to six grid rule’s × 4 hospitals!!!! BUT NEVER BOTHERING TO UTILIZE anything and instead for reasons of insanity all representative’s including 2 SSA hired Medical Doctor’s either given access to all records or not given access to my evidence hospital record’s THEY JUST FLAT FRANKLY DENIED TWICE IGNORED EVERY PLEADING BEGGING REQUEST from me my dire needs letter’s my voicemails my letter’s nothing answered but what was was denied.
HOW DOES THIS HAPPEN
WHY DOES THIS HAPPEN
?
Today my brothers been bed confined over a year and a half, he’s weakening
frail.
His claim was approved after an A.L.J. requesting a current medical evidence witness a medical teleconference was reluctantly agreed to the medical doctor at the teleconference was moved too emotional moment’s having witnessing face to face the image of my brother the non verbal gibberish he put fourth the MD aggressively thumbing through his medical records the physician paused to apologize on behalf of the SSA for having let this go unresolved for so long when it is quite obvious that my brother is what we’d proclaimed him to be, finishing up by saying we’d not have to worry about this any more
I wish it were so but it
isn’t concluded it won’t be until the
remaining majority of his SSI back –
pay is released immediately rather
than six months later.
I haven’t had success
with our local SSA office
till I’m blue in the face!
still not a call back in
regards to back pay released.
thanks for sharing
your’s truly
Real B
Lindsay M.
Check my account
Janeen M.
Please contact me at 2153036669 only 12/30/24 in morning my name Ms mcdowell
S.D.
Hi, Janeen. Thanks for reading our blog. Our social media platforms are not secure against fraud and scams. For your protection, please do not share any personal information on social media that may identify you, such as your phone number, Social Security number, mailing address, or email. If you have questions regarding your situation, you can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. We can help you by phone or make you an appointment to come into an office. For more information about how to contact us, visiting our How Can We Help? webpage. We hope this helps.
Robert M.
Check my account
Clifford C.
You wrote:
“This blog post is informational only and does not constitute financial advice or an endorsement of ABLE products or ABLE organizations by the Social Security Administration. There may be other financial options that could be a better fit for some individuals. You must use your best judgement to determine which option is best for your situation.
Please include a link where I can access such additional sources of assistance / programs.
Brigget
Comment
This article about ABLE was attractive to me. I promoted ABLE and encourage others to open an account believing money put into the account would not affect benefits. I later attended an ABLE webinar. There was a speaker from SSA who completely confused me. She said money that you earned and deposited in ABLE will count against your benefits because SSA is a means tested program. She also stated gift money placed into your account by other persons (up to $100,000), will not count against your benefits. If this is so, it renders ABLE account holders who get SSI as beggars! Additionally this renders ABLE as a tax shelter for the rich, persons of means who have disabled children or protection only for account holders who have donor friends or relatives. What is true? This blog or what the SSA rep said in the ABLE SSI webinar? So confused. If this is true it is insulting and undignified to learn there is nothing one can do of their own power to get ahead except be dependent still. Many are working part time to improve the quality of life while on SSI. They do not all have donors. Most people on SSI do not. SSA does not want working ABLE account holders to earn monies deposited ? SSA wants you to spend every penny of the money within a month’s time? What if you have a need greater than the months income that must be saved for? Isn’t that what flexible IRAs are about? Does SSA want people to merely be dependent on gifts bestowed? Please clear this up so I can inform the community I serve in Illinois.
Bridget
I watched this webinar to get detailed info on SSI
APRIL 2024 WEBINAR Social Security Benefits and ABLE Accounts: Representative Payees, Reporting, and More
https://www.abletoday.org/ssa
video link: https://youtu.be/ciiDaAsJo8Y
video url at exact time of SSA speaker Laurie Zelik:
https://youtu.be/ciiDaAsJo8Y?t=1581 this is where she states the opposite of this blog post. Is her info out dated? What’s going on?
Brandi B.
My question is, social security recognizing the ability of substantial harm disabled disability to the program? ABLE all stripes i’m consumed to the happiness and the chill for one full hearts around the universe long as we recognize the growth and the intelligent thought on the program, allow you to benefit and grow through economic,Cordial belief and allows you to receive also infinite pay What way in a success to A goal………………..
Florence R.
I’m 76 and have several disabilities and was just told I don’t qualify for the program that is ending today.
Brandi B.
Horribly misunderstood and understand seven disabilities and cannot apply for the program because you don’t qualify. There’s gotta be some other way That you should probably get the assistance that you need covering all your personal needs met hopefully take the time to reapply in the timeframe that you probably were told maybe words was probably worded different in the system and they probably didn’t understand because it’s a new program. I know they deal with Cajun disability hardship, disability recovery, disability, and substantial mindframe thinking disability so in that category hopefully your knees are met within those word frames…….
Christiana H.
How do I apply? I’m 71 and became disabled in 2001. I did receive disability pay from Social Security. After 65, it’s no longer disability, but regular social security. My disability did not go away when I turned 65. I did receive medical assistance, but lost it last year, because I went over the limit, $1.493, after my monthly Medicare payment, $173, was taken out. For 2025, this amount went up to $185. There went the 2.5 % Cola. I have some savings, because of that, I don’t qualify for a Medicare savings account either.
S.D.
Hi, Christiana. Thanks for reading our blog and for your comments. When you reached your full retirement age, we were required to automatically convert your disability benefits to retirement benefits. Your benefit amount likely remained the same. You may be able to receive assistance from the state in which you live. To learn about services in your community and to find out if you’re eligible, you can contact your state or local social services agency or welfare office. For other resources, check out our blog: How Connecting to Benefits Programs Can Save You Money. We hope this helps.