Estimate Time2 min

What is an ABLE account?

The Achieving a Better Life Experience (ABLE) Act of 2014 allows qualifying individuals with disabilities to save money in a tax-exempt account that can be used for qualified disability expenses (QDE).  Learn how an 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 account that helps people with disabilities and their families save for disability expenses without losing eligibility for other disability benefits such as Medicaid and SSIand balances below $100,000 do not impact SSI benefits. Once an account is opened, anyone can make contributions, including friends, family, or the account beneficiary. Additionally, any earnings or money used in an ABLE account for qualified disability expenses, are not subject to federal income tax. 

Who can open an ABLE account?

An ABLE account can be opened by your loved one or Person with Signature Authority (PSA). If they are unable to open their own account, it may be done by their PSA who must be the Designated Beneficiary's power of attorney, conservator or legal guardian, spouse, parent, sibling, or grandparent; or a representative payee appointed by the Social Security Administration (SSA)—in that order.
 
An ABLE account can be opened by going directly to your state ABLE program's website or calling. 

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: 
 
  • 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. 
On January 1, 2026, the ABLE Age Adjustment Act will expand eligibility to include people who have a disability that began before age 46.

What is the contribution limit for an ABLE account?

In 2025, the annual contribution limit is $19,000 (up to $34,060 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.
 
It’s helpful to know that 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 ssa.gov. 

Examples of qualified disability expenses

Withdrawals from an ABLE account should only be used for qualified disability expenses. These expenses are related to your loved one's disability to help maintain or improve their quality of life, health, or independence. They include but aren't limited to:  
  • Food
  • Education
  • Housing and transportation 
  • Legal fees
  • Financial management and administrative services
  • Funeral and burial cost
 It’s a good idea to keep detailed records of your withdrawals in case the IRS requests verification of how the money was used. See Achieving a Better Life Experience (ABLE) Accounts, for a more comprehensive list of qualified disability expenses. 

Get organized, hit your goals

Create a flexible plan you can adjust to your life.

More to explore

*Aggregate annual contributions to an Attainable account may not exceed the federal annual gift-tax exclusion amount, which is currently $19,000 for 2025 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 $15,060 for 2025 but may change in the future. See the Attainable Disclosure Document (PDF) for additional details. ​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.

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.

1106361.3.0