What is an Able Account?
An ABLE account is a tax-advantaged savings account for individuals with disabilities that began before age 26 (soon increasing to age 46 starting in 2026 under the ABLE Age Adjustment Act).
Key Benefits of ABLE Accounts
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Maintain Public Benefits
You can save up to $100,000 without affecting SSI eligibility. Medicaid is not affected, even above that amount. -
Tax-Free Growth
Earnings grow tax-free, and withdrawals are tax-free if used for qualified disability expenses. -
Flexible Spending
Funds can be used for a wide range of expenses, such as:-
Education
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Housing and rent
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Transportation
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Therapy
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Assistive technology
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Employment training
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Legal fees
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Basic living expenses
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Control and Independence
The person with autism (if capable) or the caregiver can manage the account. As the individual matures, they may take more ownership of their financial future.
Eligibility
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The individual must have a disability with onset before age 26 (expanding to age 46 in 2026).
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They must meet the criteria for a disability or be receiving SSI or SSDI due to their condition.
Contribution Limits (2025)
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Annual contribution limit: $18,000 (same as the federal gift tax exclusion limit).
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Additional contributions may be made by the beneficiary if they are working (up to around $14,580 depending on income and state).
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Contributions must come from post-tax income, but some states allow state income tax deductions.
What Can ABLE Account Money Be Used For?
ABLE accounts are special savings accounts for individuals with disabilities. The money grows tax-free and can be used for a wide range of expenses related to the person’s disability—without affecting eligibility for benefits like SSI or Medicaid.
Qualified Disability Expenses Include:
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Education (school, classes, tutoring, etc.)
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Food
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Housing (rent, utilities, repairs)
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Transportation (car, rideshare, public transit)
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Employment support (job training, coaching)
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Assistive technology (devices, software, personal support)
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Health & wellness (gym memberships, therapy, supplements)
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Financial management (bank fees, tax prep)
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Legal fees (guardianship, wills, powers of attorney)
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Funeral and burial expenses
These must be related to the individual’s disability—but that includes a wide range of everyday needs.
Click here to open an ABLE account
Providers who can help
1847 Financial
Brett Garrison
Call: 610-784-3466
Email: bgarrison@1847financial.com
The Advocacy Alliance's Representative Payee Program is a system of financial and budgetary management for persons who have a mental illness, persons who have mental retardation, and older adults who are unable to manage their monthly Social Security benefits, other benefits and financial affairs.
Where: 744 North 19th Street, Allentown, PA 18104
Call: (877) 315-6855 or email info@theadvocacyalliance.org
Ikor
Our services are client-centered and adaptive to the client’s needs, allowing the trustee, financial advisor, or institution to concentrate on the big picture of the client’s finances.
Call: 855-367-4567
Mass Mutual Financial Group Eastern Pennsylvania
Services: The Special Care Program's holistic approach begins with traditional financial strategies
including financial position, protection, investments, tax reduction strategies, retirement planning and estate planning. Their planners specialize in Life Care Planning, Government Program Integration, and Family Dynamics & Financial Resource Management.
Where: 3701 Corporate Parkway, Suite 350, Center Valley, PA 18034
Call: 610-798-2567
Sally Schoffstall
Special Education Attorney
Services: Elder and special needs planning law, guardianship, estate planning, and estate administration
Where: 2987 Corporate Ct #200, Orefield, PA 18069
Call: 610 706 0686
What About Other Accounts in My Child’s Name?
If your child has money saved in other types of accounts, an ABLE account can help protect their eligibility for government benefits.
UGMA/UTMA Accounts
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These custodial accounts automatically transfer to your child at age 18.
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If the total value is over $2,000, it can affect SSI benefits.
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Solution: Transfer funds to an ABLE account (within annual limit) to keep benefits safe.
Shielding Income
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Child support, alimony, or earned wages can count against SSI/Medicaid limits.
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Solution: Deposit this income into an ABLE account to avoid disqualification from benefits.
Small Settlements or Inheritances
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If the amount is under the annual ABLE contribution limit ($18,000 in 2025), you can transfer it directly.
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This helps avoid losing benefits due to a temporary increase in savings.
Using as a Personal Savings Account
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Adults with disabilities can manage their own ABLE account (if capable).
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A caregiver or guardian can help monitor deposits and spending.
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Allows financial independence without losing vital supports.
Using 529 Plan Funds
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You can roll over up to $15,000/year from a 529 college savings plan into an ABLE account tax-free.
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No income tax or penalty if used for qualified disability-related expenses.
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Great for families who originally saved for education but now need flexibility.
For Larger Inheritances or Settlements:
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An ABLE account is best for modest amounts.
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For large sums (e.g., inheritance, legal settlements), consider:
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Third-Party Special Needs Trust (TPSNT)
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Pooled Trust
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These trusts can hold large amounts of money without affecting SSI/Medicaid and offer more long-term control.
⚠️ Inheritances should be left to the trust, not directly to the person with a disability.
Special Considerations for Autism
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Unpredictable needs: ABLE funds provide flexibility for future therapies, support services, and assistive devices.
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Planning for independence: Funds can help support more independent living or job training.
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Guardianship/POA: If your child cannot legally manage their own account, you’ll need legal authority (e.g., guardianship or durable power of attorney).
