Save for what matters most—without losing the support you count on.

ABLE accounts offer people with disabilities a way to invest tax-free for the future, spend on everyday expenses, and still keep the public benefits they rely on every day. A few key benefits of an ABLE account include:

• Tax-free growth and tax-free withdrawals for qualified expenses
• Money in your ABLE account, as well as withdrawals for qualified expenses, do not count as an asset for purposes of federal benefits programs (some SSI exceptions apply)
• Income tax deductions and credits in certain states
• ou can contribute up to $19,000 a year - or more if employed
• Anyone can contribute - family, friends, employers, etc.
• Various investment portfolios and savings options
• Prepaid debit card for easy withdrawals and spending
• Funds from a 529 College Savings Account can be rolled over into an ABLE account, tax-free

When you make contributions to an ABLE account, you can choose to put your money in savings options or in investment portfolios. Your contributions then have the chance to grow tax-free. And unlike many other investment options, when you withdraw your savings to use for qualified expenses, those withdrawals are tax-free, too. That can mean more money back in your pocket. And, if you live in Oregon, any contribution you make to an account makes you eligible for the state’s income tax credit( opens in a new window ), worth $180 for single filers or $360 for joint filers. You do not need to be the owner of the account to contribute and claim the tax credit (that includes people who send funds through a gifting page).

If a beneficiary is working, they can save an extra amount through ABLE to Work( opens in a new window ). You can also load your ABLE Visa® Prepaid Card( opens in a new window ) with money from your account and use it for eligible expenses whenever and wherever you want.

Finally, managing the account is a snap with access to a simple and intuitive online platform.

Millions of people with disabilities rely on public benefits and federal programs such as Supplemental Security Income (SSI) and Medicaid for their basic needs, but this assistance can be limiting. Those receiving much needed benefits, like SSI, are restricted to having only around $2,000 in assets, essentially forcing them to live in poverty. The Stephen Beck, Jr. Achieving a Better Life Experience Act, known as the ABLE Act, was passed by Congress in 2014 and allows states to create tax-advantaged savings programs for people with disabilities. After the ABLE Act was passed, people with eligible disabilities could finally save for their everyday needs, invest in a tax-free account, and prepare for the future without losing critical public benefits.

No. When saving with an ABLE account, you can keep your federal benefits (SSI, SSDI, Medicaid, SNAP, TANF, HUD Assistance, Section 8, etc.). If you receive SSI, you can save up to $100,000 before ABLE funds start counting against your benefits asset limits. If you choose to go over the $100,000 limit, your SSI benefits will be suspended, but you’ll still be eligible for all other federal benefits (such as Medicaid). Once your balance drops below the limit, your SSI benefits will resume as normal.

People with disabilities can save and invest at least $19,000 a year for a wide range of eligible expenses. Those who are employed can save even more. Workers with disabilities who do not already participate in a workplace retirement plan can save up to an additional $15,060 a year (or more in some states), depending on their annual income.

No. If the money in your ABLE account is used to pay for qualified expenses, it won’t be counted as income for your state or federal taxes. That means your investments grow tax-free, putting extra money in your pocket.

Most expenses related to the costs associated with living with a disability qualify as an eligible expense. The expense must simply help maintain or improve the health, independence, or quality of life of the person living with a disability. Some of the most common qualified expenses as defined by the IRS include:

• Living expenses
• Education
• Housing
• Transportation
• Employment, training, and support
• Assistive technology
• Personal support services
• Health, prevention, and wellness
• Financial management
• Administrative services
• Legal fees
• Oversight and monitoring
• Funeral and burial costs
• And more

If you use your ABLE funds for a non-qualified expense, you will have to pay taxes, plus a penalty, on part of your withdrawal. A withdrawal used for a non-eligible expense could also affect your eligibility for benefits such as Supplemental Security Income (SSI) and Medicaid.

The money in an ABLE account is not considered to be an asset for federal benefit purposes. This includes SSI, Medicaid, HUD housing assistance, SNAP, FAFSA applications, and more.For Supplemental Security Income (SSI) benefits only, you can have up to $100,000 in the ABLE account before the funds become a “countable” asset. If you choose to go over the $100,000 limit, your SSI benefits will be suspended, but you’ll still be eligible for all other federal benefits (such as Medicaid). Once your balance drops below the limit, your SSI benefits will resume as normal.