By Amy Miller, AFC®

7 Things You Need to Know About ABLE Accounts

Whether you’re an individual with a disability, a family member, a caregiver, or a trusted supporter, here are seven essential things to know about ABLE accounts.

Living with a disability, or supporting someone who does, often means navigating financial systems that weren’t designed with your needs in mind. From managing everyday expenses to planning for long-term stability, saving money can feel complicated, especially when public benefits are part of the picture. 

ABLE accounts were created to help change that. 

An ABLE account (Achieving a Better Life Experience) is a tax-advantaged savings account designed to help individuals with disabilities save money while maintaining eligibility for critical benefits like SSI and Medicaid. Whether you’re an individual with a disability, a family member, a caregiver, or a trusted supporter, here are seven essential things to know about ABLE accounts.

1. ABLE Accounts Are Specifically Designed for People with Disabilities 

ABLE accounts allow individuals with disabilities to save and invest money without being penalized for building assets. They were created to address a long-standing gap in the financial system, one that discouraged saving for people who rely on public benefits. 

If the disability began before age 46 (as of January 2026), the individual may be eligible for an ABLE account. 

2. ABLE Accounts Help Protect Access to Public Benefits

One of the most important features of ABLE accounts is that savings generally do not count as assets for programs like Supplemental Security Income (SSI) and Medicaid, up to certain limits. 

This allows individuals and families to save without fear of unintentionally losing access to essential healthcare and income support. 

3. ABLE Funds Can Be Used for a Wide Range of Disability-Related Expenses

Money saved in an ABLE account can be used for qualified disability expenses, which may include: 

  • Education and training
  • Housing and utilities
  • Transportation
  • Healthcare and therapy
  • Assistive technology
  • Employment supports
  • Financial management services 

This flexibility makes ABLE accounts useful for both short-term needs and long-term planning. 

4. Parents and Caregivers Can Help Manage the Account

For children or individuals who need assistance, a parent, guardian, or authorized representative can help open and manage the ABLE account. This makes it easier to: 

  • Contribute funds
  • Track spending
  • Plan for future needs 

ABLE accounts offer a practical way for families to take an active role in financial planning while supporting independence and stability. 

5. Anyone Can Contribute to an ABLE Account 

ABLE accounts allow contributions from parents, relatives, friends, and even employers. This makes them a helpful tool for: 

  • Gifts from family members
  • Holiday or birthday contributions
  • Community support 

Opening an ABLE account can create a simple, safe way for loved ones to contribute to a person’s financial well-being. 

6. ABLE Accounts Can Work Alongside Other Financial Tools

An ABLE account does not have to be the only financial tool for family use. Many people use ABLE accounts alongside: 

  • Special needs trusts 
  • Public benefits 
  • Employer-based savings or income supports 

Understanding how these tools complement one another can help families build a more flexible and sustainable financial plan. 

7. You Can Start Small and Build Over Time

You don’t need a large deposit or a perfect plan to open an ABLE account. Even small, consistent contributions can make a meaningful difference over time. 

ABLE accounts are designed to grow with the individual, providing options, flexibility, and peace of mind as needs and goals evolve. 

Why ABLE Accounts Matter 

ABLE accounts make it possible to save without sacrificing benefits, and to plan with greater confidence. They support financial stability, independence, and choice for individuals with disabilities and families who support them. 

If you’re exploring ways to save while protecting benefits, an ABLE account may be an important part of your financial strategy. 

Learn more about ABLE accounts and explore tools to help you get started. 

 

Take the America Saves Pledge today to get started on your savings journey. We’ll be your partner along with way and will send you tips, tools and resources to keep you motivated and on track.  

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