Achieving a Better Life Experience (ABLE) Accounts
Empowering Individuals with Disabilities to Save Without Losing Benefits
An ABLE account is a tax-advantaged savings account designed specifically for individuals with disabilities. ABLE accounts allow eligible individuals to save money for disability-related expenses without jeopardizing their eligibility for essential public benefits such as SSI or Medicaid.
At Eckert & Krautkramer, LLC, we help families and individuals navigate the legal and financial aspects of ABLE accounts—ensuring their loved ones can plan for the future with confidence and clarity.
What Is an ABLE Account?
Created under the ABLE Act of 2014, these accounts provide a way for people with qualifying disabilities to save up to $17,000/year (2024 limit) in a dedicated account that grows tax-free. Funds in an ABLE account can be used for a wide range of qualified disability expenses, including:
- Housing and rent
- Transportation
- Medical and dental care
- Education and training
- Assistive technology
- Legal and financial services
- Basic living expenses
Unlike traditional savings, up to $100,000 in an ABLE account does not count against the SSI resource limit. Medicaid eligibility is also preserved, even beyond that threshold.
Key Benefits of an ABLE Account
- Preserves Eligibility for Supplemental Security Income (SSI) and Medicaid
- Tax-Free Growth on investments in the account
- Flexibility in how funds can be used
- Control and Independence for the individual with a disability
- Family Contributions Allowed from parents, grandparents, or friends
Who Is Eligible?
To open an ABLE account, the individual must:
- Have a disability diagnosed before age 26
- Be receiving SSI or SSDI, or self-certify that they meet the disability criteria
- Be a U.S. citizen or legal resident
Note: Federal legislation is expanding eligibility to those diagnosed before age 46 starting in 2026.
Ownership & Management
- The individual with the disability is the account owner
- A parent, guardian, or agent under a power of attorney may manage the account if the beneficiary is unable to do so
- Each eligible individual can have only one ABLE account
How We Can Help
Our team assists families and individuals by:
- Determining ABLE account eligibility
- Coordinating with special needs trusts and other benefit planning tools
- Advising on account management and qualified distributions
- Educating trustees, guardians, and agents on proper use
- Integrating ABLE accounts into your estate and financial plan
ABLE Accounts vs. Special Needs Trusts
While both ABLE accounts and Special Needs Trusts help preserve public benefits, they serve different purposes:
| Feature | ABLE Account | Special Needs Trust |
|---|---|---|
| Beneficiary Age Limit | Yes (diagnosis before age 26) | No |
| Annual Contribution Limit | Yes ($17,000/year) | No |
| Total Asset Cap for SSI | Yes ($100,000) | No |
| Control by Beneficiary | Yes (in most cases) | Usually managed by a trustee |
| Use for Housing | Yes | Often limited for SSI recipients |
Often, families use both tools together as part of a comprehensive special needs plan.
Ready to Set Up an ABLE Account?
If you or a loved one is living with a disability, an ABLE account can provide greater autonomy, peace of mind, and financial flexibility.
Contact us today to schedule a consultation and learn how ABLE accounts can support your long-term goals.
