NEW YORK — Paul Safarik, a 32-year-old resident of Lincoln, Nebraska, has been involved in the food industry since the age of 21, working in roles such as delivering for popular quick-service restaurants and stocking shelves at grocery stores. Recently, he has utilized his income to purchase a treadmill for exercising indoors during inclement weather and to assist with the expenses for dental braces. Safarik, who has Down syndrome, has managed to do this in part due to a relatively unknown savings initiative known as an ABLE account. This type of account enables individuals with disabilities to save money beyond the standard $2,000 asset cap that can affect their eligibility for crucial benefits like Supplemental Security Income (SSI) and Medicaid.
Without an ABLE account, exceeding this asset limit could jeopardize Safarik’s eligibility for government support. “Thanks to this ABLE account, we don’t have to worry as much,” shared Deb Safarik, Paul’s 71-year-old mother, who lives with him. “It’s great that he can work and save without it being a disadvantage.”
ABLE accounts, established under the Achieving a Better Life Experience Act of 2014, have been available since 2016 for individuals diagnosed with a disability before the age of 26. A significant development is set to take place next year, as these accounts will become accessible to individuals diagnosed before turning 46. This change is expected to extend eligibility to approximately 6 million more people, including 1 million veterans, according to Indiana State Treasurer Daniel Elliott, who oversees these accounts in his state. Currently, around 8 million individuals across the nation meet the criteria.
“The previous limitation, which allowed individuals to save only up to $2,000 without the threat of losing benefits, created constraints for many families,” Elliot stated. “Now, we are observing average balances in ABLE accounts ranging from $11,000 to $12,000.”
Typically, ABLE accounts can accumulate balances of up to $100,000 without affecting SSI benefits. The lifetime balance caps vary among different states, with totals ranging from approximately $300,000 to over $500,000. These accounts can generally be set up online, and many state treasurers also accept applications via paper forms.
Anyone can contribute to an ABLE account, including the beneficiaries themselves, their families, friends, organizations, nonprofits, and employers, with a yearly contribution limit of $19,000 slated for 2025. If the account owner is employed and is not part of a workplace retirement plan, they may contribute an additional amount equivalent to their annual gross income—up to between $15,560 and $18,810, depending on the state’s regulations.
Tax benefits associated with ABLE accounts include tax-free investment gains, provided the withdrawals are used for “qualified disability expenses,” which can cover a range of necessities like healthcare costs, education, tutoring, and job training. Account holders can select from various investment options or choose to keep the funds without further investing.
Elliot emphasized that promoting awareness about these accounts remains a major hurdle for the National Association of State Treasurers (NAST), of which he is also the secretary-treasurer. “Many families believe that saving money could jeopardize their benefits if they have a disability,” he explained. “It is essential for us, both at the state and national level, to inform people that they can now save for their future, including the possibility of purchasing a home. The challenge lies in effectively communicating this change.”
Despite approximately 8 million people eligible, only 186,641 ABLE accounts had been established by the end of 2024, as reported by NAST. The upcoming increase in the age limit will also allow access for individuals whose disabilities arose after the age of 26, including those who may have been affected by illnesses such as COVID-19.
Andrew Warren, a senior associate for policy and research at the Financial Health Network, noted that awareness is crucial. “Less than one percent of eligible individuals actually possess ABLE accounts,” he stated. “Our findings indicate that one of the significant obstacles to financial health for this group is restrictive asset limits. However, there is often a gap in information between those providing direct services and ABLE account administrators.”
If you are interested in qualifying for an ABLE account, two helpful online resources—ABLE Today and the ABLE National Resource Center—can guide you through eligibility checks. Currently, ABLE accounts are designated for individuals whose disabilities onset before age 26 and who have a terminal or long-term disability resulting in marked and severe functional limitations. Additionally, a qualifying individual must either be eligible for SSI or have a doctor confirm their disability.
Starting in 2026, the qualification age for ABLE accounts will extend to those diagnosed before age 46. Individuals and families anticipating this change can begin preparing by learning about the account setup process, ensuring they can immediately start contributing funds as of January 2026. Friends, family members, and organizations can also set aside money to contribute to the account starting in the new year.
