What Is an ABLE Account?

ABLE accounts are tax-advantaged savings accounts designed to help people with disabilities save money for disability-related expenses.

ABLE stands for Achieving a Better Life Experience. These accounts are similar to 529 plans, which are used for education savings. However, ABLE accounts are specifically designed for people with disabilities.

Anyone who is eligible for Supplemental Security Income (SSI), or who would be eligible if not working for wages exceeding a certain threshold, can set up an ABLE account.

ABLE accounts offer a number of benefits, including:

* Tax-advantaged savings. Contributions to ABLE accounts are made with after-tax dollars, but they grow tax-free. Withdrawals for qualified disability-related expenses are also tax-free.

* No income limits. There are no income limits for ABLE account contributions or withdrawals.

* Wide range of qualified expenses. Qualified disability-related expenses include a wide range of costs, including education, housing, transportation, medical expenses, and assistive technology.

* No asset limits. There are no asset limits for ABLE accounts. This means that people with disabilities can save money in an ABLE account even if they have other assets, such as a home or car.

ABLE accounts are a great way for people with disabilities to save money for disability-related expenses. They offer a number of benefits, including tax-advantaged savings, no income limits, and a wide range of qualified expenses.

To learn more about ABLE accounts, visit the ABLE National Resource Center website.