These little-known bank accounts allow Americans with disabilities to save and invest
If you're an American with a disability who receives government assistance, you likely qualify for an ABLE account, or you may starting next year
NEW YORK (AP) — Paul Safarik, 32, of Lincoln, Nebraska, has worked in the food industry since he was 21, delivering for quick service restaurants like Raising Cane's and stocking groceries at stores like Trader Joe's. With his earnings, Safarik, who has Down syndrome, recently bought a treadmill to stay active when the weather's bad and helped cover the cost of braces for his teeth.
That's unusual, financially speaking, and it's thanks in part to a little-known savings account called an ABLE account, which lets people people with disabilities save money beyond the $2,000 asset limit that's linked to benefits like Supplemental Security Income and Medicaid. Without the account, Safarik could have risked losing government assistance if he had more than $2,000 in assets saved at one time in a given month.
“With this ABLE account, we don't have to worry as much," said Deb Safarik, 71, Paul's mother, with whom he lives. “It's nice that he can work and save, and not have that be held against him.”
Named for the 2014 law that created them, the Achieving a Better Life Experience Act, ABLE accounts have been available since 2016 to individuals identified by a doctor as having a disability before the age of 26. Next year, they'll become available to those identified before the age of 46, which will increase access to an additional 6 million people, including 1 million veterans, according to Indiana State Treasurer Daniel Elliott, who administers the accounts in his state. An estimated 8 million people nationwide already qualify.
“The fact that it used to be that individuals could only save up to $2,000 or they could lose benefits — that was really restricting a lot of families," Elliot said. “People were forced into a position where they couldn't save for their futures. Now we're seeing average account balances of (ABLE accounts) between $11,000 and $12,000.”
Generally, ABLE accounts may reach totals of $100,000 without affecting Supplemental Security Income. Lifetime balance limits for the various state ABLE accounts can range from around $300,000 to over $500,000. They're administered by state treasurers, and the vast majority can be set up online via their websites. Some ABLE plans accept paper applications as well.
Anyone can contribute to an ABLE account — including the account owner, friends, family, organizations, nonprofits, and employers — up to $19,000 per year in 2025. If the account owner is able to work and not already contributing to a workplace retirement plan, they can contribute an additional amount equal to their yearly gross income. For 2025, that amount is up to an additional $15,560 to $18,810, depending on the state administering the account.
There are also tax advantages. Investment earnings from ABLE accounts remain untaxed as long as money taken from the account is used for “qualified disability expenses,” such as medical treatment, education, tutoring and job training. Account holders may choose from a number of investment options for the funds in their accounts or hold and save the money without investing it further.
Elliot said raising awareness of the accounts is the biggest challenge for the National Association of State Treasurers (NAST), for which he's also the secretary treasurer.
“Many people are used to the idea that, ‘If I have a disability or my child has one, it could endanger their benefits to save money,’” he said. “We as a state and as a country need to start reaching out to people and saying, ‘Look, you actually can save money now. You could save towards the purchase of a home.’ The hardest thing right now is getting that message out. We need more people to be aware things have changed.”
According to NAST's data, just 186,641 ABLE accounts existed at the end of 2024, despite an estimated 8 million people qualifying. When the age limit is raised, the accounts will also become available to people whose disabilities may have been the result of an accident in adulthood or developed later in life, such as after a COVID infection.
Andrew Warren, senior associate for policy and research at the Financial Health Network, who studies the financial circumstances of Americans with disabilities, said that the vast majority of people surveyed for a 2023 report by the organization did not know these accounts existed.
“Less than 1% of eligible individuals have these accounts,” Warren said. “Our research show that one of the major barriers to becoming financially healthy for this vulnerable group is asset limits. But there's an information disconnect between caseworkers and direct services providers on the ground and (administrators of ABLE accounts).”
Here's what to know:
Two online resources — ABLE Today and the ABLE National Resource Center — can guide you through questions to determine if you or a friend or family member qualifies.
Right now, ABLE accounts are for:
— People whose disability began before age 26, and
— People for whom the disability is “terminal or long-term (more than 12 months)” and for whom the disability causes “marked and severe functional limitations.”
A qualifying person must also meet one of the following criteria:
— Being eligible for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) because of the disability; or
— A doctor has diagnosed the disability (physical or mental).
In 2026, the age limit for ABLE accounts will rise to 46.
You can begin educating yourself now about the process of setting up the account, so you can add money and fund the account right away beginning in January 2026. Family, friends, and organizations may also begin setting money aside with the intention of contributing it to the account in the individual's name as of January 1.
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The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.
