ABLE Accounts

What is an ABLE Account: A tax-advantaged savings accounts for individuals with disabilities and their families.

Who is Eligible: Individuals with significant disabilities with an age of onset of disability before turning 26 years of age and

  1. receiving Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI), then the individual is automatically eligible to establish an ABLE account; or
  2. If not a recipient of SSI and/or SSDI, if the individual meets Social Security’s definition and criteria regarding significant functional limitations and receive a letter of certification from a licensed physician

Benefits of ABLE Accounts:

  • Do not affect eligibility for most benefit programs, including Medicaid and SSI
  • Are tax advantaged, so earning grow tax free
  • Can accept contributions from anyone, including the account owner, family and friends

ABLE Account funds may be used for many types of expenses, including the following:

  • Education
  • Housing
  • Food
  • Transportation
  • Employment training and support
  • Assistive technology
  • Personal support services
  • Health
  • Prevention and wellness
  • Financial management and administrative services
  • Legal fees
  • Funeral and burial expenses

Examples of when an ABLE account would be helpful to avoid going over the $2,000 asset limit:

  • A relative leaves a small inheritance
  • The receipt of back paid child support or SSI
  • Unspent work earnings or SSI benefits

Contribution Limits:

  • Maximum of $18,000 per year. This includes contributions from any source.
  • ABLE account owners who have a job may contribute up to $14,580 more per year from earned income. If the employer contributes to a workplace retirement plan on the individual’s behalf, then the individual is not eligible to make this additional contribution.
  • The account can hold $100,000 total before affecting government benefits. Once the account exceeds $100,000, SSI benefits are suspended until the account falls below $100,000. Medicaid benefits remain intact. There is an account max of $425,000 contributed over the lifetime of the account owner.
  • The assets in an account cannot exceed the account balance limit of $305,000.

Additional Information about ABLE Accounts:

  • Only administered through state run plans but do not need to be set up in home state.
  • You can only have one ABLE Account.
  • You can open an ABLE account at any age.
  • Keep records of any withdrawals and how the funds were used

What happens to ABLE accounts funds if the beneficiary dies:

Should the beneficiary die with funds remaining in the ABLE account, the state of New Jersey may file a claim to all or a portion of the funds in the account equal to the amount which the state spent on the beneficiary through their state Medicaid program after the establishment of the ABLE account.


Able National Resource Center has detailed information about Able Accounts.

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