Paul Safarik, 32, of Lincoln, Nebraska, has been employed in the food business since he was 21. He stocks groceries at Trader Joe’s and delivers for fast service restaurants like Raising Cane’s. Safarik, who has Down syndrome, recently used his money to help pay for braces for his teeth and purchase a treadmill to be active during inclement weather.
Financially speaking, that’s rare, and it’s partly because of a little-known savings account called an ABLE account, which enables people with disabilities to save more than the $2,000 asset limit associated with programs like Medicaid and Supplemental Security Income. If Safarik had more than $2,000 in assets saved at one point in a given month without the account, he might have run the risk of losing government aid.
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Paul lives with his mother, Deb Safarik, 71, who stated, “With this ABLE account, we don’t have to worry as much.” It’s good that he can work and save money without anyone judging him for it.
Since 2016, ABLE accounts—named for the 2014 law that established them, the Achieving a Better Life Experience Act—have been accessible to those who have been diagnosed by a physician as having a handicap before the age of 26. According to Indiana State Treasurer Daniel Elliott, who oversees the accounts in his state, they will be made available to those who were recognized before the age of 46 starting next year, expanding access to an additional 6 million individuals, including 1 million veterans. Nationwide, an estimated 8 million people are already eligible.
Many families were severely constrained by the previous rule that people could only save up to $2,000 or risk losing their benefits, according to Elliot. People found themselves in a situation where they were unable to save money for the future. ABLE accounts currently have average balances ranging from $11,000 to $12,000.
In general, $100,000 can be deposited into an ABLE account without having an impact on Supplemental Security Income. The different state ABLE accounts have lifetime balance limits that can vary from approximately $300,000 to more than $500,000. State treasurers oversee their administration, and the great majority of them can be set up online through their websites. Paper applications are also accepted by many ABLE plans.
Up to $19,000 annually in 2025 can be contributed to an ABLE account by anybody, including the account owner, friends, relatives, organizations, nonprofits, and employers. The account owner may make an extra contribution equal to their annual gross income if they are able to work and are not currently making contributions to a workplace retirement plan. It might range from an extra $15,560 to $18,810 for 2025, depending on the state that manages the account.
Additionally, there are tax benefits. As long as funds are utilized for approved disability expenses, such as medical care, education, tutoring, and job training, investment gains from ABLE accounts are tax-free. Account holders have the option of holding and saving the money in their accounts without making any additional investments, or they can select from a variety of investment choices.
Elliot, who serves as secretary treasurer for the National Association of State Treasurers (NAST), stated that increasing awareness of the accounts is the organization’s largest problem.
According to him, many individuals are accustomed to the notion that their benefits to save money may be jeopardized if they or their children have a disability. As a nation and a state, we must begin educating the public by telling them that they can save money right now. You may put money aside for a house purchase. Spreading that word is currently the most difficult task. More people need to know that things have changed.
Even though an expected 8 million people qualified, there were only 186,641 ABLE accounts at the end of 2024, according to NAST data. People whose disabilities may have occurred later in life, such as following a COVID infection, or may have been caused by an accident in adulthood will also be eligible to use the accounts if the age limit is raised.
Most persons contacted for a 2023 report by the Financial Health Network were unaware of these accounts, according to Andrew Warren, senior associate for policy and research who focuses on the financial situation of Americans with disabilities.
According to Warren, fewer than 1% of those who qualify have these accounts. According to our research, asset constraints are a significant obstacle to this vulnerable group’s financial well-being. However, there is a lack of communication between ABLE account managers and caseworkers and direct service providers on the ground.
Here’s what you should know:
How do I know if I qualify for an ABLE account?
Two internet sourcesTo find out if you or a friend or family member are eligible, ABLE Today and the ABLE National Resource Center can walk you through the application process.
ABLE accounts are now used for:
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People whose disability began before age 26, and
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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.
Additionally, a qualifying individual needs to fulfill one of the following requirements:
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Being eligible for Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) because of the disability; or
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A doctor has diagnosed the disability (physical or mental).
The ABLE account age limit will increase to 46 in 2026.
What can I do to prepare if I or a family member will qualify next year?
In order to fund the account and add funds immediately starting in January 2026, you can start learning about the account setup process today. As of January 1, family members, friends, and organizations may also start putting money aside with the goal of adding it to the account in the person’s name.
— The Associated Press’s Cora Lewis
The Charles Schwab Foundation provides funding to the Associated Press for informative and illuminating reporting aimed at enhancing financial literacy. Charles Schwab and Co. Inc. is not affiliated with the independent foundation. The AP bears full responsibility for its reporting.
