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To be eligible, a person’s disability must meet a severity threshold and the disability must have begun before they reached the age of twenty-six. Starting January 1, 2026, the ABLE Age Adjustment Act expanded eligibility to those whose disability began before the age of forty-six.
To meet the disability requirement, an individual must be receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) because of a disability. SSI provides monthly payments to people with disabilities and SSDI provides monthly payments to people who have a disability that stops or limits their ability to work. Another way to achieve eligibility, if not receiving SSI or SSDI, is to have a licensed physician sign documentation stating that the individual’s disability meets a “marked and severe” functional limitation standard as stated in the ABLE law.
How Do ABLE Accounts Work?
ABLE-eligible individuals can add money to a savings account and any earnings are tax-deferred and tax-free as long as they are used for “qualified disability expenses.” Disability expenses include but are not limited to costs related to blindness or the owner’s disability and benefit the account owner’s health, independence, or quality of life. An account with a balance below $100,000 is excluded from the SSI resource limit, but Medicaid eligibility will stay intact regardless of account balance. An individual can only have one ABLE account, and it cannot exceed $520,000.
What Are the Contribution Limits of ABLE Accounts?
As of 2025, contributions to ABLE accounts cannot exceed more than $19,000 annually. However, those who are ABLE-eligible and employed, may contribute additional funds to their account if the contribution is equal to the federal poverty line or the account owner’s income, whichever is less. Additional contributions are not permitted if the person is also contributing to a retirement plan.
ABLE Accounts in New York
In New York, an ABLE account may have a checking account component which allows its owners to make withdrawals via debit card or check. If the eligible person is unable to open their own ABLE account, an agent under a power of attorney may open the account on his or her behalf. A conservator, legal guardian, spouse, parent, sibling, or grandparent may also open an ABLE account for an eligible person.
An ABLE account is one solution of many for individuals eligible for government benefits looking to protect their benefits and preserve assets. Eligible individuals should work with an attorney to ensure the best solution for their own circumstance.
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