What is an ABLE account? A complete guide to disability savings
As of 2026, more people are eligible to contribute to a tax-advantaged savings and investment account that helps people with disabilities cover key expenses.
Achieving a Better Life Experience (ABLE) accounts give people with disabilities the chance to save and invest money and use the money tax-free to pay for qualified disability expenses.
In most cases, savings in an ABLE account do not impact an individual’s eligibility for federally funded benefits that are based on need.
ABLE accounts are authorized under Section 529A of the Internal Revenue Code.
Recent rule changes, including an increase in the age of eligibility, have expanded access to these accounts, making them more widely available than in previous years. In this guide, we’ll explain what an ABLE account is, who qualifies, how these accounts preserve benefits, and how to open one.
What is an ABLE account and why is it important?
Living with disabilities can be challenging and expensive. In fact, on average, those with disabilities need to spend roughly 29% more simply to achieve lifestyle parity with those who do not have disabilities, according to the National Disability Institute (NDI) report.
An ABLE account is a tax-advantaged savings account created under the ABLE Act of 2014 that allows individuals with disabilities to save for qualified expenses without jeopardizing certain public benefits.
These might include costs related to:
- Education
- Housing
- Transportation
The accounts themselves grew out of the federal Achieving a Better Life Experience (ABLE) Act, which became law on Dec. 19, 2014.
The significance of ABLE accounts for people with disabilities
Many needs-based assistance programs for the disabled have strict rules that can eliminate eligibility for those with more than $2,000 in countable resources, such as cash and funds in non-ABLE checking accounts, savings accounts, and some retirement accounts, according to the ABLE National Resource Center.
ABLE accounts help address this limitation by allowing individuals to save beyond standard asset limits while maintaining eligibility for certain benefits.
In addition, up to $100,000 in ABLE funds does not count as a resource when determining eligibility for Supplemental Security Income.
Who is eligible for an ABLE account?
Before you establish an ABLE account, it is important to understand who is eligible and to know other key rules regarding these accounts.
In general, eligibility depends on when the disability began and whether the individual meets federal disability criteria.
Disability requirements for ABLE accounts
Eligibility for ABLE accounts is based in part on the age at which a disability began. Historically, individuals qualified if their disability onset occurred before age 26.
As of 2026, that age limit increased to 46, expanding access to millions of additional individuals.
Those who meet the age requirement are automatically eligible to open an ABLE account if they also receive benefits under SSI or SSDI. If you are not receiving such benefits, you’ll need a letter of certification from a doctor confirming that you meet the functional limitation criteria.
One account per person rule
If you qualify for an ABLE account, you can open only one account per beneficiary. Federal rules prohibit maintaining multiple ABLE accounts for the same individual.
Residency considerations for ABLE programs
When the original legislation regarding ABLE accounts passed in 2014, there was a stipulation that you had to open an account in your state of residency. However, this rule was eliminated the following year.
So, if your state has not established ABLE accounts, you are free to enroll in an account in any other state that accepts non-residents. Many state programs now allow non-residents to enroll, giving account holders more flexibility when choosing a plan.
How ABLE accounts preserve disability benefits
One of the primary benefits of an ABLE account is its ability to help individuals save money without losing eligibility for certain means-tested benefits.
Many federal and state assistance programs have strict asset limits, which can make it difficult to build savings. ABLE accounts are designed to work within those rules.
ABLE accounts and SSI benefits
For Supplemental Security Income (SSI), individuals are generally limited to $2,000 in countable resources. For couples, the figure is $3,000.
This means the individual cannot own more than this amount in cash, bank accounts, stock investments, some types of personal property, and more.
Many resources do not count toward this limit, including a home, a vehicle, and household goods. In addition, the first $100,000 in an ABLE account is exempt from the resource limit.
Once you exceed this $100,000 threshold, SSI payments will be suspended until your ABLE account balance drops below that mark.
ABLE accounts and Medicaid eligibility
ABLE account balances do not affect Medicaid eligibility, regardless of the amount saved in the account.
Even if your balance exceeds $100,000, you can still typically receive medical assistance through Medicaid.
Other benefits protections
ABLE account funds do not count when determining eligibility for programs such as:
- Free Application for Federal Student Aid (FAFSA)
- HUD
- Medicaid
- Medicare
- Supplemental Nutrition Assistance Program (SNAP)
Tax advantages of the Attainable® Savings Plan
The Attainable Savings Plan is a type of ABLE account. The Massachusetts Educational Financing Authority offers the plan, and Fidelity Investments manages it.
You do not need to be a resident of Massachusetts to open this type of account. However, Fidelity notes that your own state may have an ABLE account that offers residents and taxpayers better tax benefits or other perks than what you will find in the Attainable Savings Plan.
Tax-free growth for qualified expenses
As with any ABLE account, the Attainable Savings Plan allows account holders with disabilities to save money that can be used tax-free to pay for “any spending that helps maintain or improve the account owner’s health, independence, or quality of life,” according to Fidelity. Examples include:
- Assistive technologies and related support
- Basic living
- Education
- Employment training and support
- Health
- Housing
- Personal support services
- Transportation
Potential state tax deductions
Some states may offer a break on state taxes on ABLE accounts, such as the Attainable Savings Plan, while others do not. It is important to know your state’s rules before you contribute.
The Attainable Savings Plan does not offer a state tax deduction to Massachusetts residents who use the Attainable Savings Plan. Those who live outside the Bay State should check to see if their state has its own ABLE account that offers a state tax deduction.
The Saver’s Credit opportunity
You may be able to take advantage of the federal Saver’s Credit when making contributions to ABLE accounts such as the Attainable Savings Plan. This could include a tax credit of up to 10%, 20%, or 50% of the first $2,000 that you deposit in the account. Your adjusted gross income and filing status will determine the size of the tax credit.
Qualified disability expenses (QDEs)
To take advantage of the tax benefits associated with ABLE accounts, you must use the money to pay for qualified disability expenses.
This type of expense must relate to your blindness or disability, including the cost of things that help boost your health, independence, or quality of life.
What expenses qualify under ABLE accounts?
Examples of qualified disability expenses include:
- Basic living expenses
- Education
- Housing
- Transportation
- Employment training and support
- Assistive technology
- Personal support services
- Health care
- Financial management and administrative services
Documentation best practices for QDEs
Typically, you should keep receipts of every qualified disability expense you incur. It is also helpful to jot down some notes about how the expense relates to your disability and improves your life.
The IRS is responsible for making sure people are using ABLE accounts appropriately, and having the right documentation can be helpful in the event of an audit.
Attainable® Savings Plan features and benefits
The Massachusetts-based Attainable Savings Plan is open to residents of the state and others. Fidelity Investments manages the plan.
Investment options in the Attainable® plan
Fidelity offers 10 different types of investment options for those who have Attainable Savings Plan accounts. These range from money market funds to funds that are all stocks or a mixture of stocks and bonds.
There is no annual account maintenance fee, but you will pay investment portfolio fees.
Account management tools and resources
The Fidelity website offers information on how to use and get the most from your Attainable Savings Plan account. In addition, you can call or visit one of the company’s Investor Centers for more assistance.
Contribution limits and rules
In 2026, you can contribute up to $20,000 to an Attainable Savings Plan or another ABLE account. The owner of the account is allowed to make contributions, but so are family members and friends. Money can also come from a special needs trust or a 529 qualified tuition plan, according to the ABLE National Resource Center.
If you own an ABLE account, live in the continental U.S., and do not participate in an employer-sponsored retirement plan, you can contribute an additional $15,650 to your account or up to your job earnings, whichever is less.
Residents of Alaska ($19,550) and Hawaii ($17,990) have higher limits.
ABLE accounts vs. special needs trusts
Special needs trusts are legal tools designed to hold assets for a person with disabilities without disqualifying them from needs-based government benefits. When structured correctly, trust assets are not counted as the beneficiary’s personal resources.
Setting up a special needs trust can be more complicated than establishing an ABLE account and usually requires you to use the services of an attorney.
Key differences between ABLE accounts and special needs trusts
Unlike an ABLE account, there are no age-related restrictions on who can set up a special needs trust. Also, a special needs trust is a legal document that must comply with your state’s laws.
ABLE account contribution limits are established by the federal government and individual states. Contributions to a special needs trust must fall within the annual gift tax exclusion amount.
In general, there are fewer limits for both contributions and balance size in a special needs trust.
A special needs trust also allows you to keep far higher dollar limits excluded from calculations when establishing eligibility for federal benefits.
Other differences distinguish ABLE accounts from special needs trusts. Consult with a financial advisor or attorney to learn more.
When to use an ABLE account and a special needs trust together
Many disabled people and their families use both a special needs trust and an ABLE account as part of their financial strategy. The trust may be used for longer-term assets, while an ABLE account is used for daily expenses.
How to Open an Attainable® Savings Plan (ABLE) Account
Fidelity Investments manages the Attainable Savings Plan, and you can sign up for an account at the Fidelity website. Or, visit a Fidelity Investor Center and speak with a representative who can help.
Step-by-step account opening process
To sign up for an Attainable Savings Plan account, go to the Fidelity website and click on “Open an ABLE account.” This will start the process. Follow the prompts that Fidelity issues as you open the account.
You will not need to prove that you have a disability when signing up, but the IRS and Social Security Administration reserve the right to demand such proof.
Choosing the right ABLE program
While anyone who qualifies can sign up for an Attainable Savings Plan account, it might make more sense to sign up for an account specific to your state. Such accounts may offer tax breaks or other perks that make the account a better fit for you than an Attainable Savings Plan account.
How an ABLE account supports long-term financial independence
An ABLE account can help people cover costs associated with disabilities and do so in a tax-efficient manner. Such costs may include education, housing, and transportation expenses, among others.
The tax-advantaged nature of these accounts can help someone who is disabled build enough savings to lead a more financially independent life. At the same time, these savings will not prevent disabled people from using needs-based government programs.
To learn more about these accounts, consult with a financial advisor or tax professional.
