Your benefits are here to stay
When you open an account, you won’t lose your state or federal benefits.
An ABLE account is meant to help supplement your current benefits with a way to save for eligible expenses. If you’re receiving SSI (Supplemental Security Income), you can have up to $100,000 in the account without it counting towards the $2,000 asset limit. If you choose to go over the $100,000 limit, your SSI benefits will be suspended, but you’ll still be eligible for all other benefits (such as Medicaid). Once your balance drops below the $100,000 limit, your SSI benefits will resume as normal.
Save, invest, and spend tax free
Both the earnings from your ABLE account and the money withdrawn for eligible expenses are tax-free.
Get more of the things you need
The money in the account can be used for a lot of everyday expenses, even housing and rent. Most costs related to living with a disability qualify as an eligible expense. The eligible expenses are geared towards improving health, independence, and quality of life.
- Living expenses
- Employment, training, and support
- Assistive technology
- Personal support services
- Health, prevention, and wellness
- Financial management
- Administrative services
- Legal fees
- Oversight and monitoring
- Funeral and burial costs
- and more
Keep track of your expenses
We don’t need to see your receipts but the IRS might. You should keep documentation of your purchases in case the IRS asks for it, and you have to provide proof of how you spent the money from your account.
You’ll have to pay tax on the ABLE account’s earnings, plus a 10% penalty on earnings for non-eligible expenses. Also, keep in mind that any non-qualified withdrawals are considered income for that month and could count against your eligibility for SSI benefits or Medicaid.