Millions of people on disability can now save money without losing benefits—here’s how

LOS ANGELES - If you're on disability and worried that saving money could cost you your benefits, there's good news: ABLE accounts offer a way to build financial security without risking your Supplemental Security Income (SSI) or Medicaid coverage.

These tax-advantaged savings accounts are available now in most states—and starting in 2026, millions more Americans will become eligible as the rules expand. But even with new access on the horizon, many people don’t know these accounts exist or how to take advantage of them.

What is an ABLE account and how does it work?

The backstory:

ABLE accounts—short for Achieving a Better Life Experience—were created under a 2014 federal law to help people with disabilities save money without losing access to means-tested benefits.

Until recently, people who received SSI or Medicaid couldn’t have more than $2,000 in savings without jeopardizing their benefits. But ABLE accounts change that. They allow individuals to save up to $100,000 without affecting SSI eligibility, and even more in total depending on state limits—some going as high as $500,000.

Money in an ABLE account can be used for a wide range of "qualified disability expenses," including medical care, housing, education, transportation, and job training.

Who qualifies for an ABLE account in 2025 and 2026?

What we know:

To open an ABLE account today, you must have been diagnosed with a qualifying disability before the age of 26. The condition must be considered long-term (more than 12 months), severe, and meet one of these criteria:

• You're eligible for SSI or SSDI because of the condition, or
• A doctor has formally diagnosed you with a qualifying physical or mental impairment.

Beginning in January 2026, the age cutoff will increase to 46, expanding eligibility to an estimated 6 million more people, including about 1 million veterans.

What we don't know:

While the eligibility expansion is clear, state-level rollout specifics—such as outreach efforts and any added support—have not yet been fully announced. State treasurers say getting the word out will be one of the biggest hurdles.

How much can you save in an ABLE account without losing benefits?

By the numbers:

Here’s a breakdown of how much you can contribute—and what those savings mean for your benefits.

• In 2025, individuals can contribute up to $19,000 per year.
• If you work and don’t contribute to a workplace retirement plan, you can add up to an additional $15,560 to $18,810, depending on your state.
• SSI benefits are not affected unless the account exceeds $100,000.
• Lifetime caps range from $300,000 to $500,000, based on state rules.

Anyone—including family, friends, employers, or nonprofits—can contribute to the account. Earnings on investments grow tax-free, as long as the funds are used for qualified expenses.

Why don’t more people use ABLE accounts?

The other side:

Despite the financial advantages, ABLE accounts remain underutilized. As of the end of 2024, only about 186,000 accounts had been opened—far below the estimated 8 million eligible individuals.

Many people still believe that saving too much money could automatically disqualify them from disability benefits. Others simply haven’t heard of ABLE accounts or don’t know how they work.

What do experts say about ABLE account access and awareness?

What they're saying:

State treasurers and disability advocates say education is the biggest barrier.

"We as a state and as a country need to start reaching out to people and saying, ‘Look, you actually can save money now,’" Indiana State Treasurer Daniel Elliott told the Associated Press. "You could save toward the purchase of a home. The hardest thing right now is getting that message out."

Andrew Warren, a researcher with the Financial Health Network, said many caseworkers and social service providers aren’t aware of ABLE accounts either. "Less than 1% of eligible individuals have these accounts," Warren told the AP. "There’s an information disconnect."

How to open an ABLE account online

What you can do:

Most ABLE accounts are administered by state treasurers and can be opened online. You don’t need to go through a bank, and you can compare plans across different states.

To get started, visit:

• ABLE Today
• The ABLE National Resource Center

These sites provide eligibility guides, application tools, and resources for families and caregivers. Some ABLE plans also accept paper applications if you prefer a non-digital option.

What changes are coming for disability savings accounts?

What's next:

The 2026 expansion of ABLE account eligibility could be a game-changer for millions of Americans whose disabilities began later in life—such as those who experienced traumatic injuries, chronic illness, or long COVID.

Financial planners suggest preparing now by learning how the accounts work, setting money aside, and identifying the best ABLE plan for your needs. That way, you’ll be ready to fund the account starting January 1, 2026.

MoneyNews