ABLE Accounts: Tax-Advantaged Savings for Individuals with Disabilities

ABLE (Achieving a Better Life Experience) accounts represent a powerful financial tool that allows individuals with disabilities to save money without losing eligibility for critical government benefits like Medicaid and SSI.

What Are ABLE Accounts?

Created by the ABLE Act of 2014, these tax-advantaged savings accounts are specifically designed for individuals whose disabilities occurred before age 26. ABLE accounts offer:

The ability to save above the $2,000 asset limit (up to $100,000) while maintaining SSI eligibility.
Tax-free growth when used for qualified disability expenses.
Easy access to funds when needed.
A complement to Special Needs Trusts in a comprehensive financial plan.

Key Benefits of ABLE Accounts

Preserve Government Benefits

Funds in an ABLE account (up to $100,000) are exempt from the $2,000 SSI resource limit, allowing individuals to build savings while maintaining essential benefits.

Tax Advantages

Tax-free growth on investments within the account
No federal taxes on withdrawals used for qualified disability expenses
Potential state tax advantages depending on your location

Flexible Spending Options

ABLE account funds can be used for a wide range of qualified disability expenses, including:

Education
Housing (without affecting SSI benefits, unlike some trust distributions)
Transportation
Employment training and support
Assistive technology
Personal support services
Health and wellness
Financial management
Legal fees
Basic living expenses

Greater Independence

The individual with disabilities can have direct control over their ABLE account (if appropriate), fostering financial independence and self-determination.

Both of these can lead to greater success with post-school employment, education, and independent living.

Our ABLE Account Services

At Perseverance Planning, we help families leverage ABLE accounts as part of a comprehensive special needs planning strategy. We can help with:

Account Selection and Setup

We guide you through the process of selecting the right ABLE program and establishing an account, considering:

Investment options
Fees and expenses
State tax benefits
Program features and limitations
Online access and usability

Contribution Strategy Development

We help determine optimal contribution approaches, including:

Annual contribution planning within limits ($19,000 in 2025)
ABLE to Work additional contributions for employed beneficiaries
Coordination with other planning tools like Special Needs Trusts
Family gifting strategies to maximize account growth

Integration with Comprehensive Planning

We ensure your ABLE account works seamlessly with other elements of your special needs
plan:

Coordinating with Special Needs Trusts for maximum benefit
Aligning with government benefit strategies
Incorporating into long-term financial planning
Optimizing for tax efficiency

Ongoing Management Guidance

We provide continuous support for effective ABLE account management:

Education on qualified disability expenses
Guidance on record-keeping best practices
Monitoring regulatory changes
Regular review and adjustment of contribution strategies

ABLE Accounts vs. Special Needs Trusts

Many families wonder whether they should choose an ABLE account or a Special Needs Trust. The answer is often "both." Each tool has distinct advantages:

Our experts help you determine the right combination of these powerful tools for your loved one's specific situation.

Getting Started with an ABLE Account

Take the first step toward financial security and benefit protection. Contact Perseverance Planning today to learn how an ABLE account can fit into your loved one's comprehensive financial plan.

Book a Consultation