NEW YORK — Paul Safarik, a 32-year-old resident of Lincoln, Nebraska, has embraced the food service sector since his early twenties. His employment includes delivering food for popular chains like Raising Cane’s and managing grocery stocks at establishments such as Trader Joe’s. Recently, he utilized his earnings to purchase a treadmill, enabling him to maintain his fitness during inclement weather, and he also contributed towards the cost of dental braces.
This financial progress for Safarik comes, in part, from a relatively obscure savings option known as an ABLE account. This account type allows individuals with disabilities to save assets beyond the standard $2,000 limit that is typically associated with government benefits like Supplemental Security Income and Medicaid. Without the ability to utilize an ABLE account, Safarik risked the potential loss of essential support if his savings exceeded $2,000 in any given month.
“With this ABLE account, we don’t have to worry as much,” noted Deb Safarik, Paul’s 71-year-old mother, with whom he shares a home. “It’s great that he can earn an income and save without it negatively impacting his benefits.”
Established through the Achieving a Better Life Experience (ABLE) Act of 2014, these accounts became available to qualified individuals starting in 2016. Initially, they were open to those whose disabilities were identified before the age of 26. However, starting next year, the eligibility will expand to include individuals identified before age 46. This change is expected to benefit an additional 6 million people, including around 1 million veterans, according to the Indiana State Treasurer, Daniel Elliott, who oversees these accounts in his state. Generally, it’s estimated that around 8 million people nationwide might qualify for ABLE accounts.
“The previous limit of $2,000 was a substantial barrier for many families,” Elliott explained. “It hampered people’s ability to save for their own futures. Currently, the average balance in ABLE accounts is between $11,000 and $12,000.”
In normal circumstances, ABLE accounts can accumulate up to $100,000 without affecting Supplemental Security Income. The lifetime cap on these accounts varies by state, ranging from around $300,000 to over $500,000. Most states offer the option to open an account online, while some allow for traditional paper applications.
There are no restrictions on who can contribute to an ABLE account. Contributions can come from the account holder, family members, friends, employers, nonprofits, and other organizations, all up to a limit of $19,000 annually starting in 2025. If the account holder has a job and is not contributing to a retirement plan, they can add a further amount equivalent to their annual gross income, which can total between $15,560 and $18,810 in 2025, depending on the regulations in their state.
Aside from contribution limits, ABLE accounts come with tax benefits. Earnings on investments made from these accounts remain untaxed, provided that withdrawals are designated for “qualified disability expenses,” such as medical care, education, tutoring, or job training. Expenditures can also be made from a variety of investment options, or the funds can simply be saved without any further investment.
Elliott emphasized that one of the primary challenges for the National Association of State Treasurers (NAST) is raising awareness about ABLE accounts.
“Many individuals still believe that saving money could compromise government benefits if they have a disability or if their child does,” he stated. “We need to educate the public that it’s now feasible to save funds. People can actually save toward significant purchases, like a home. Our biggest task ahead is spreading this awareness.”
As per data from NAST, a mere 186,641 ABLE accounts were active at the close of 2024, even though an estimated 8 million individuals qualify. As the age qualification expands, those who acquire disabilities due to accidents in adulthood or later in life, including ailments related to COVID, will also be eligible for these accounts.
Andrew Warren, Senior Associate for Policy and Research at the Financial Health Network, highlighted a critical issue: the majority of people with disabilities are still unaware of the existence of these beneficial accounts. “Less than 1% of those eligible have taken advantage of these opportunities,” Warren stated. “Asset limits present a significant challenge for many in this vulnerable group. Further complicating matters is the lack of communication between caseworkers and the administrators of the ABLE accounts.”
For those seeking to confirm their eligibility for an ABLE account, two online platforms—ABLE Today and the ABLE National Resource Center—can guide users through the necessary criteria. Currently, the requirements are:
— Individuals whose disability onset was prior to age 26, and
— Persons with a long-term or terminal disability that results in marked and severe limitations in functionality lasting more than 12 months.
Additionally, a qualifying individual must meet at least one of the following conditions:
— They qualify for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) due to the disability; or
— A physician has provided a diagnosis for the disability (either physical or psychological).
In 2026, the age limit for ABLE accounts will rise to 46.
To prepare for the upcoming changes, individuals or their family members who may qualify next year can begin familiarizing themselves with the account setup process. This way, they can immediately fund their accounts starting in January 2026. Friends and family can also start saving in anticipation of contributing to the individual’s ABLE account as of January 1.
