Paul Safarik, 32, of Lincoln, Nebraska, has been working in the food sector since he was 21, delivering for quick service restaurants such as Raising Cane’s and stocking groceries at Trader Joe’s. Safarik, who has Down syndrome, used his money to purchase a treadmill to keep active when the weather is poor and to assist pay the expense of dental braces.
That’s unique financially, and it’s due in part to a little-known savings account called an ABLE account, which allows individuals with disabilities to save money over the $2,000 asset limit associated with benefits such as Supplemental Security Income and Medicaid.
Safarik may have lost government support without the account if he had more than $2,000 in assets saved at one point in a given month.
“With this ABLE account, we don’t have to worry as much,” said Deb Safarik, Paul’s mother, aged 71. “It’s nice that he can work and save, and not have that be held against him.”
ABLE accounts, named after the 2014 legislation that established them, the Achieving a Better Life Experience Act, have been accessible since 2016 to those diagnosed with a handicap before the age of 26.
Next year, they will be accessible to anyone identified before the age of 46, increasing access to an additional 6 million people, including 1 million veterans, according to Indiana State Treasurer Daniel Elliott, who oversees the accounts in his state. An estimated 8 million individuals countrywide are already eligible.
“The fact that it used to be that individuals could only save up to $2,000 or they could lose benefits — that was really restricting a lot of families,” said Elliot. “People were driven into a situation in which they couldn’t save for the future. We’re now seeing average account balances for (ABLE accounts) ranging from $11,000 to $12,000.
ABLE accounts may often accumulate up to $100,000 without impacting Supplemental Security Income. The lifetime balance restrictions for different state ABLE accounts may vary from $300,000 to more than $500,000.
They are controlled by state treasurers, and the most majority may be set up online via their websites. Some ABLE plans allow paper applications.
Anyone can contribute to an ABLE account
In 2025, anybody, including the account owner, friends, relatives, organizations, NGOs, and employers, may make contributions to an ABLE account of up to $19,000. If the account owner is eligible to work and is not already enrolled in a workplace retirement plan, they may contribute an extra amount equivalent to their annual gross income.
For 2025, the sum might range from $15,560 to $18,810, depending on the state that administers the account.
There are additional tax benefits. Investment profits from ABLE accounts are tax-free as long as the funds are utilized for “qualified disability expenses,” which include medical care, education, tutoring, and job training.
Account users have the choice of investing the monies in their accounts in a variety of ways or just holding and saving the money.
Awareness is the biggest challenge
Elliot said that promoting awareness of the accounts is the most difficult job for the National Association of State Treasurers (NAST), of which he is also the secretary treasurer.
“Many people are used to the idea that, ‘If I have a disability or my child has one, it could endanger their benefits to save money,'” he told me. “We, as a state and a nation, need to start reaching out to individuals and telling them, ‘Look, you can save money right now. You may save for the purchase of a property.
The most difficult thing right now is getting that word out. We need more people to realize things have changed.”
According to NAST statistics, there were only 186,641 ABLE accounts by the end of 2024, despite an expected 8 million persons eligible. When the age restriction is lifted, accounts will be made accessible to those whose impairments were caused by an accident as an adult or acquired later in life, such as after a COVID infection.
Andrew Warren, senior associate for policy and research at the Financial Health Network, which examines the financial situations of Americans with disabilities, said that the great majority of those polled for the organization’s 2023 study were unaware of these accounts’ existence.
“Less than 1% of eligible individuals have these accounts,” according to Warren. “Our findings reveal that one of the most significant impediments to being financially healthy for this vulnerable population is asset constraints.
However, there is a lack of communication between caseworkers and direct service providers on the ground and (ABLE account administrators).
Here’s what you should know.
How do I know if I qualify for an ABLE account?
wo online resources — ABLE Today and the ABLE National Resource Center — can guide you through questions to determine if you or a friend or family member qualifies.
Right now, ABLE accounts are for:
- People whose disability began before age 26, and
- People for whom the disability is “terminal or long-term (more than 12 months)” and for whom the disability causes “marked and severe functional limitations.”
A qualifying person must also meet one of the following criteria:
- Being eligible for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) because of the disability; or
- A doctor has diagnosed the disability (physical or mental).
In 2026, the age limit for ABLE accounts will rise to 46.
What can I do to prepare if I or a family member will qualify next year?
You may start educating yourself on the procedure of opening the account now, so you can start adding money and funding it as soon as January 2026. Family, friends, and organizations may also begin saving money with the goal of giving it to the individual’s account on January 1.