Tag: Social Security

Living with a disability can be difficult and costly. Adults who receive benefits from the Social Security Administration because of disability often are challenged to improve their life circumstances because of a $2,000 resource limit. This limit means that a person receiving payments from Supplemental Security Income (SSI) or the Social Security Disability Insurance (SSDI) program cannot have a bank account balance or any other resources on hand that exceed $2,000, without losing part of their benefit.

Savings of $2,000 or less can be limiting for someone who might want to move into a new home, invest in a vehicle or save for higher education or a vocational training program.

The government provides a way for individuals with disabilities to overcome this barrier and save money. The Stephen Beck Jr. ABLE (Achieving a Better Life Experience) Act of 2014 allows individuals to save up to $20,000 annually without losing benefits. ABLE is modeled after college savings plans. The savings and/or investment account bypasses the SSI resource limit and can grow interest tax-free.

There are some restrictions:

• The account holder must meet criteria for a disability that began before age 46.
• The account may not receive more than $20,000 per year.
• If the account balance exceeds $100,000, Social Security benefits are impacted but Medicaid benefits will remain in place.
• Most accounts have a total lifetime balance limit of $500,000.

Beginning January 1, 2026, the age criteria increased from 26 to 46 years of age. Under this expansion, many adults who were previously not eligible because their disability began after age 26 will now qualify to open an ABLE account for the first time. This adjustment is significant because thousands of people who became disabled in young or mid‑adulthood, including through injury, illness, or newly diagnosed conditions, will gain access to a savings option that protects their eligibility for public benefits

ABLE account money may not be spent on just anything. Generally, the funds can be used to pay for expenses that may help improve or maintain health, independence and/or quality of life. These are called Qualified Disability Expenses (QDEs). In this webinar recording, presented by ABLE National Resource Center, the ABLE expert presenters noted that “QDEs should be broadly understood and should not be limited to expenses for which there is a medical necessity or expenses that provide no benefits to others (outside of the benefit to the beneficiary).”

Here are a few examples of qualifying expenses: 

• Housing
• Education
• Transportation
• Personal support services
• Assistive technology
• Health and wellness
• Employment training and support

ABLE accounts are subject to IRS or SSI audits, so the account holder should keep a record of how money has been used, including:

• the purpose or cause of the expense
• how the expense relates to improving or maintaining health, independence, and/or quality of life
• a copy of the proof of purchase or payment

PAVE has created a QDE Tracking Form to make it easier to keep track of your ABLE account activity.

Download the Qualified Disability Expense Tracking Form:
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The ABLE account is a savings account, insured by the Federal Deposit Insurance Corporation (FDIC). A chosen percentage of funds in the account may also be allocated as uninsured investment money. The account holder can choose a low-, median-, or high-risk investment strategy. Low-risk is the safest, most conservative option, with the lowest possibility for return. A high-risk investment might make more money but also could lose more. A median-risk investment is somewhere in between. Based on the account holder’s choice, the money is automatically allocated into some combination of stocks, bonds, and mutual funds.

An individual considering these options may want to consider how long the money will be in the market and risk tolerance. ABLE does warn that invested money is not insured and that money, including principle, may be lost over the course of an investment period.

The account holder, family and friends can deposit funds into the account using post-taxed dollars. Contributions are not federally tax deductible; however, some states may allow for state income-tax deductions for contributions made to an ABLE account.

Although the program was federally enacted, ABLE is state-run. Washington’s program opened for enrollments in July 2018. So far, enrollments have been low, with the State Department of Commerce reporting that only a few hundred people have opened accounts. Commerce estimates about 30,000-50,000 people in Washington are eligible for the ABLE Savings Plan and have the financial assets to open an account.

Forty-five states and the District of Columbia have ABLE Savings Plans. Oregon’s plan was a year and a half ahead of Washington’s, so some Washingtonians signed up early through that option or through the national ABLE For ALL Savings Plan.

Individuals can shop around for the best program to meet their needs, and some states accept clients from all 50 states, including Virginia, Ohio, Nebraska, and Tennessee. Virginia is among the few states that issue a debit card for the account. The ABLE National Resource Center provides tools for reviewing the various state programs to find the best fit. Washington State ABLE Savings Plan links directly to a clickable form to determine eligibility.

Dial 711 for Telephone Relay Service (TRS) or teletypewriter (TTY), or call:

• Washington ABLE Savings Plan: 1-844-600-2253
• Oregon ABLE Savings Plan: 1-844-999-2253
• ABLE For ALL Savings Plan (national plan): 1-844-394-2253

Additional Resources:

• Supplemental Security Income (SSI): An overview of how SSI works, who qualifies, and how income and resources affect eligibility.
• Medicaid Basics: An introduction to Medicaid services, eligibility pathways, and how coverage supports individuals with disabilities across the lifespan.
• Medicaid Waiver Benefits for Military Families: A guide for military families navigating Medicaid waivers, including state-to-state transitions and portability considerations.
• Exploring Assistive Technology: Understanding, Access, and Resources for All Ages and Abilities: Information about what assistive technology (AT) is, how to access evaluations and funding, and what options support independence at home, school, and in the community.