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What is an ABLE account?

With a little planning, you can save for your loved one’s future without putting their disability benefits at risk. It’s important to know that government programs like Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Medicaid can include asset limits to qualify for benefits. Learn how an Achieving a Better Life Experience (ABLE) account can help you save for your loved one’s disability expenses without impacting their benefits.

What is an ABLE account?

An ABLE account is a tax-advantaged savings program that helps people with disabilities and their families save for disability expenses. Once an account is set up, anyone can make contributions, including friends, family, or the account beneficiary. If you use the money for qualified disability expenses, you won’t owe federal income tax on withdrawals, including any earnings. 

How do ABLE accounts affect disability benefits?

Many people depend on government disability programs and benefits for income, health care, and food and housing assistance. It’s helpful to know: 
  • Medicaid benefits aren’t affected by money in ABLE accounts. 
  • SSI benefits aren’t affected if the balance in your ABLE account is below $100,000. 

Who is eligible for an ABLE account?

Your loved one, the designated or account beneficiary, is eligible for an ABLE account if one of these apply:1 
  • They’re already receiving benefits under SSI or SSDI. 
  • They’re eligible for SSI based on disability or blindness that began before age 26. 
  • They’re entitled to disability insurance benefits (DIB), childhood disability benefits (CDB), or disabled widow’s or widower’s benefits (DWB) based on disability or blindness that began before age 26. 
  • They’re certified to have met the criteria for a disability before age 26. 

What is the contribution limit for an ABLE account?

In 2024, the annual contribution limit is $18,000 (up to $32,580 per year for a designated beneficiary who is employed and has employment income).* This limit includes contributions from any source, including family, friends, or even a rollover from a 529 account.1
It’s also helpful to know, if the designated beneficiary is employed and has employment income, they can sometimes contribute more than the annual limit to their ABLE account. To learn more, check out Spotlight on Achieving a Better Life Experience (ABLE) accounts on 

What are some examples of qualified disability expenses?

These are expenses related to your loved one’s disability, to help maintain or improve their health, independence, or quality of life, which could include: 
  • Education 
  • Transportation 
  • Legal fees 
  • Housing 
  • Assisted technologies and services 
  • Health costs 
See Achieving a Better Life Experience (ABLE) Accounts, for a more comprehensive list of qualified disability expenses. Also, it’s a good idea to keep detailed records of your withdrawals in case the IRS requests verification of how the money was used. 

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More to explore

1. “Spotlight on Achieving a Better Life Experience (ABLE) accounts—2024 Edition,” Social Security Administration, 2024,

The Attainable Savings Plan is offered by the Massachusetts Educational Financing Authority and managed by Fidelity Investments. Qualified ABLE programs offered by other states may provide their residents or taxpayers with state tax advantages or other state benefits. You should consider whether your home state offers its residents or taxpayers state tax advantages or benefits that are only available for investing in that state's ABLE program before making an investment in the Attainable Savings Plan.

Units of the portfolios are municipal fund securities and are subject to market fluctuation and volatility. You may have a gain or loss when you sell your units.

Please carefully consider the Attainable Savings Plan's investment objectives, risks, charges, and expenses before investing. For this and other information, contact Fidelity for a free Disclosure Document or view one online. Read it carefully before you invest or send money.

*Aggregate annual contributions to an Attainable account may not exceed the federal annual gift-tax exclusion amount, which is currently $18,000 for 2024 but may change in the future. If, however, a Designated Beneficiary is employed and has employment income, he or she may contribute an additional amount to his or her Attainable account up to the lesser of (1) the Designated Beneficiary's compensation for the taxable year, or (2) an amount equal to the Federal Poverty Level for a one person household, which is currently at $14,580 for 2024 but may change in the future. See the Attainable Disclosure Document (PDF) for additional details.

This information is general in nature and provided for educational purposes only.

Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.