ABLE Accounts
Articles and Spotlights
What is an ABLE Account?
ABLE Accounts are tax-advantaged savings accounts for individuals with disabilities. Learn if you are eligible for an ABLE account and why you may benefit from having one. Learn what you can spend the money on and how many accounts you can have, among other things.
* THERE ARE MANY DIFFERENT ABLE ACCOUNTS TO CHOOSE FROM. INQUIRE ABOUT OBTAINING AN ABLE ACCOUNT COMPARISON MATRIX TO HELP YOU CHOOSE THE BEST ACCOUNT FOR YOU. *
Slide Deck - Social Security Benefits and ABLE Accounts
ABLE Today collaborated with the Social Security Administration and ABLE Experts to host a comprehensive webinar to provide:
- Benefits of owning an ABLE account
- Relationship between ABLE and Social Security Benefits
- Resources
- ABLE-related information that must be provided to SSA
- Resources
- And More!!
* LEARN ABOUT ABLE ACCOUNTS AND SOCIAL SECURITY BENEFITS TODAY *
How Can ABLE Funds
Be Used?
Funds in an ABLE Account can be used for qualified disability expenses (QDE) that are expenses for supplies or services related to the account owner’s blindness or disability that assists them in increasing and/or maintaining their health, independence and/or quality of life. The Internal Revenue Service (IRS) and the Social Security Administration (SSA) may monitor an ABLE account to be sure funds are used properly.
* LEARN MORE ABOUT EACH CATEGORY OF QUALIFIED DISABILITY EXPENSES *
ABLE Accounts vs
Special Needs Trusts
ABLE Accounts and Special Needs Trust are used to protect Government Benefits. You may want to use one or both of these protected savings option in your financial planning.
* COMPARE THESE TWO PROTECTED SAVINGS OPTIONS TO SEE IF USING ONE OR BOTH OF THESE ACCOMPLISHES YOUR GOALS *
ABLE Programs Prepare for Expanded Eligibility
The ABLE Age Adjustment Act’s proposed amendment was signed into law in December 2022. Starting in 2026, another 6 million Americans (including 1 million veterans) will have access to ABLE programs. Currently, the onset of a person’s disability must be before the age of 26 – but the new law increases that age to 46.
* INCREASING THE MINIMUM DISABILITY AGE REQUIREMENT FOR ABLE ACCOUNTS GIVES MORE PEOPLE ACCESS TO THESE TAX-ADVANTAGED SAVINGS ACCOUNTS AND PROMOTES LONG-TERM VIABILITY OF THE PROGRAM. *
ABLE Account Legislation Introduced
A package of three bills that expand access to the ABLE program were introduced in August 2024.
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ABLE Awareness Act - Requires federal and state agencies to inform people about the ABLE program and how to enroll
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ABLE Employment Flexibility Act - Allows employers to contribute to an employee’s ABLE account in lieu of a 401k account so that employees with disabilities can safely save for retirement without fear of losing their financial benefits
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ABLE Direct Deposit Act - Affirms that direct deposits from employers or government programs can be made to ABLE accounts.
* PASSAGE OF THESE ABLE ACCOUNT ACTS IS THE RIGHT THING TO DO *
ABLE Account: Can it Serve as a Representative Payee Account?
A rep payee can direct deposit SSI/SSDI benefits into an ABLE account if they title the ABLE account as a rep payee account, such as "Jane Doe for the benefit of John Doe" and if they have signature authority. When the ABLE account is titled as a rep payee account, Social Security requires that the beneficiary does not have access to the funds.
* I AM NOT A FAN OF USING AN ABLE ACCOUNT AS A REP PAYEE ACCOUNT FOR A HOST OF REASONS INCLUDING (1) ONLY BENEFIT MONEY GOES INTO A REP PAYEE ACCOUNT SO SOCIAL SECURITY RULES PROHIBIT OTHER DEPOSITS; (2) YOU MUST FOLLOW IRS SPENDING AND RECORD KEEPING RULES FOR EVERY WITHDRAWAL. *