People with disabilities often face financial challenges due to strict asset limits. However, a special savings account called an ABLE account offers a solution. ABLE accounts allow individuals with disabilities to save money without losing access to benefits like Medicaid or Supplemental Security Income.
Paul Safarik, 32, from Lincoln, Nebraska, knows the value of ABLE accounts. Despite having Down syndrome, he has worked in the food industry for years. Recently, Safarik bought a treadmill and paid for braces. Thanks to his ABLE account, Safarik can save money beyond the usual $2,000 limit for people on government benefits.
These accounts are part of the 2014 Achieving a Better Life Experience (ABLE) Act. Since 2016, they have helped many people with disabilities save without sacrificing their support programs. Starting next year, ABLE accounts will be available to more individuals. The eligibility age will rise from 26 to 46, allowing six million more people to benefit, including veterans.
Currently, about 8 million Americans qualify for ABLE accounts. Indiana State Treasurer Daniel Elliott, who manages these accounts in his state, says that ABLE accounts are life-changing. “People used to face a $2,000 savings limit, which was restrictive,” he explains. Now, the average ABLE account balance is $11,000 to $12,000, and some accounts can hold up to $100,000.
The accounts offer several benefits, including tax-free growth. As long as the funds are used for “qualified disability expenses” like medical care, education, or job training, account holders do not pay taxes on their earnings. Anyone can contribute to an ABLE account, including family members and employers, with a yearly limit of $19,000 in 2025.
Despite these advantages, many people still don’t know about ABLE accounts. According to the National Association of State Treasurers (NAST), only 186,641 ABLE accounts existed by the end of 2024. This number is small compared to the 8 million eligible people. Raising awareness is key to increasing the number of accounts.
Andrew Warren from the Financial Health Network highlights the disconnect between caseworkers and ABLE account administrators. “Less than 1% of eligible individuals know about these accounts,” he says. This information gap prevents many from taking advantage of this valuable tool.
In conclusion, ABLE accounts provide a crucial financial opportunity for individuals with disabilities. As more people become aware of these accounts, they will be able to save for the future without jeopardizing their benefits.
