ABLE Accounts & Guaranteed Funding Streams

The Achieving a Better Life Experience (ABLE) Act, signed into law in 2014, created a new category of tax-advantaged savings account specifically for individuals with disabilities. ABLE accounts allow eligible individuals — and their families — to save and invest money without it counting against SSI asset limits, up to certain thresholds.

Key ABLE Account Features:

Contributions up to $18,000 per year (2024 limit) from any source
Account balances up to $100,000 are excluded from SSI resource counting
Funds can be used for a broad range of qualified disability expenses, including housing, transportation, education, employment support, assistive technology, and health care
Earnings in the account grow tax-free when used for qualified expenses
Employed ABLE account holders may be eligible to contribute additional amounts above the standard annual limit through the ABLE to Work provision

ABLE Accounts vs. Special Needs Trusts

ABLE accounts and Special Needs Trusts serve complementary but distinct purposes. ABLE accounts are simpler to open and manage, have no setup costs (but do have ongoing costs), and offer more flexibility for day-to-day expenses. Special Needs Trusts can hold larger amounts, have no annual contribution cap, and offer greater legal protection for significant assets. Many families use both in coordination.

Leahy Life Plan helps families understand ABLE account eligibility, contribution rules, qualified expense categories, and how ABLE accounts interact with SSI, Medicaid, and Special Needs Trusts.

ABLE account eligibility requires that the individual’s disability onset occurred before age 26 — a threshold that the ABLE Age Adjustment Act raised from age 26 to age 46, with the expansion taking effect in January 2026. This change dramatically expands access to ABLE accounts for individuals with later-onset disabilities and veterans.

Special Needs Financial Planning