Understanding ABLE Accounts

Purpose:
To help Hub staff explain what ABLE accounts are, who can open them, and how they affect benefits and contributions.

Q&A

Q: What is an ABLE account and who can open one?
An ABLE account (Achieving a Better Life Experience) is a special savings account for people who have a disability that began before age 26. It helps people save money for disability-related expenses without affecting eligibility for most benefits, including Supplemental Security Income (SSI), Medical Assistance (MA), and SNAP (food assistance).

Money in an ABLE account must be used for approved disability-related expenses, such as:

• Education or training
• Housing and utilities
• Transportation
• Health care
• Work-related expenses
• Assistive technology
• Other approved living expenses

If an ABLE account balance goes over $100,000, the excess may temporarily affect SSI eligibility, but not Medical Assistance or SNAP.

Q: Where can someone open an ABLE account?
ABLE accounts can only be opened through approved programs or financial institutions. Each state has its own ABLE program.

Minnesota residents can open an account through the Minnesota ABLE Plan. However, you can also open an account in another state’s ABLE program if you prefer their options — for example, lower fees or different investment choices.

A person can only have one ABLE account at a time, no matter which state’s program they use.

Q: How much money can go into an ABLE account each year?
Typically, up to $19,000 can be added each year (from any source).

If the account holder works, they may contribute an extra $15,060 of their own earned income — meaning a total of up to $34,060 per year could go into the account.

• The extra $15,060 must come from the person’s own earnings — not gifts, benefits, or unearned income.
• If they earn less than $15,060, their additional contribution limit will be lower.

Working account holders may also qualify for the Saver’s Credit when they file federal taxes.

Be sure that contributions (from all sources combined) do not exceed the allowed yearly limit. If unsure, contact the ABLE program directly for guidance.

Internal Notes

• ABLE accounts are not the same as Special Needs Trusts, though both help people save money without losing benefits.
• If someone has questions about how ABLE funds affect benefits, refer them to Disability Benefits 101’s ABLE Accounts section for examples and calculators.
• If an individual exceeds contribution or balance limits, refer to the ABLE program or SSA for next steps.
• Confirm that the disability onset age requirement (before age 26) is met before suggesting the program.