ABLE Account 101: How They Work, Who Qualifies, and How to Get Started

What is ABLE?

An ABLE account is a tax-advantaged investment account designed for people with disabilities. You open it through a state or national program—and Vestwell helps you find and compare programs and get started.

Key benefits

• Tax-free growth: Your money grows without being taxed, and you can withdraw it tax-free when used for qualified disability expenses (we explain these below).
• Keep your benefits: Up to $100,000 in ABLE savings won’t count towards SSI resource limits. If you go over $100,000, SSI may pause. When your balance is back under $100,000, Social Security can restart payments.
• Real-life flexibility: Use it for food, housing, transportation, education, therapy, assistive tech—anythingthat helps maintain or improve your independence, health, or quality of life.
• Easy for others to help You, family, and friends can all contribute. There are yearly contribution limits. See “Contributions and tools” for the basics.

Don’t receive benefits?

ABLE can still help you grow your money with tax advantages and simple spending tools. Think “Roth‑like” growth with “HSA‑like” convenience — but with rules that are specific to ABLE.

What makes an ABLE account different?

ABLE accounts aren’t like traditional savings and investment accounts. Here are some basic account details to keep in mind when deciding if one is right for you.

• You can have someone else set up or manage your account. ABLE accounts were designed with easy-to-use, accessible features. Many individuals self-manage their account. But it’s also easy to assign a support person to help you manage your account. We call them your “Authorized Legal Representative” (ALR).
• You choose how your money is invested. Each ABLE program offers a variety of investment options. There are options from aggressive investment portfolios, designed for long-term investing, to conservative cash options designed more for short-term spending or for individuals who don’t like as much risk. The choice is up to you.
• ABLE programs do have fees. These fees vary and are roughly around $30 and a small percentage of your balance—typically less than half of one percent. Check programs and compare the fees to find the right one for you.

Find Your ABLE Program

ABLE accounts are offered by many state and national programs. Use Vestwell’s search tool to see which options serve your state and fit your needs.

How it works: Each program sets its own fees, features, and investments. If your state doesn’t run a program, you can choose another state’s program that is open nationally and accepts non‑residents. Review the program’s disclosure before you enroll.

Will I Lose My Benefits?

This is the #1 question people ask. The answer: No. You can keep your federal benefits while saving with an ABLE account.

• SSI (Supplemental Security Income): Up to $100,000 in ABLE assets won’t count toward SSI resources. If your ABLE balance goes over $100,000, SSI payments may pause. When your balance falls back under $100,000, you can tell Social Security and they can restart payments.
• Medicaid & other benefits: Medicaid, SNAP, TANF, HUD Assistance, Section 8, and other federal programs must continue no matter how much is in your ABLE account. This is guaranteed by federal law.

Best practice: If you use your ABLE account for housing expenses like rent or utilities, make the withdrawal and payment in the same month to avoid any counting issues.

About Vestwell's Role

• Your ABLE Education Hub: Vestwell provides free education and resources to help you understand ABLE accounts, how they work, and how to make the most of yours.
• Find the Right Program: Vestwell is the leading ABLE plan administrator in the country, partnering with 19 programs (and growing). We power more ABLE accounts and more ABLE savings than anyone in the nation. Our search helps you compare your program options.
• Get Started: We connect you to the program you choose so you can open your account and begin saving.
• Clear, Honest Information: We're committed to giving you the facts about ABLE accounts, how they interact with benefits, and what to expect from each program.

Are You Eligible?

You can open an ABLE account if any of these are true:

• You receive SSI or SSDI based on a disability that began before age 46. (You can open the account at any age.)
• You don't receive SSI/SSDI, but a doctor’s letter confirms your disability. The disability must be expected to last at least 12 months (or result in death) and cause significant “functional limitations” — in other words, it affects your day-to-day life in a meaningful way

Examples:

A variety of physical or mental conditions can qualify for an ABLE account, depending on how significantly they affect someone’s life. This includes conditions like autism, ADHD, mobility challenges, blindness, deafness, respiratory disorders, digestive disorders, mental illness, and more. There is a wide range! For other examples, check out the SSA’s “Blue Book” Listing of Impairments, and their List of Compassionate Allowances Conditions. Those lists don’t contain the only qualifying medical conditions, though. Similar conditions can qualify, too.

Working?

Great! Unlike with SSI, there are no work limits for ABLE eligibility. You can work full-time and still be eligible for an ABLE account. In fact, working account owners can take advantage of higher contribution limits!

What Can You Spend ABLE Money On?

ABLE funds cover Qualified Disability Expenses (QDEs). If it helps you live, learn, work, get around, or stay healthy, it likely qualifies:

• Housing & Living: Rent, utilities, maintenance, home modifications
• Transportation: Car payments, gas, public transit, accessible vehicles
• Education & Work: Tuition, training, job coaching, assistive technology
• Health & Wellness: Therapy, medication, medical equipment, personal support
• Assistive Technology: Mobility aids, software, devices that support independence
• Legal & Financial: Legal fees, financial planning, oversight services

Record‑keeping: Save receipts, invoices, and account statements. Keep notes on what you bought and why it supports your health, independence, or quality of life. Good records can help if you are ever asked about your expenses in connection with a tax filing.

Getting Started: 5 Simple Steps

1. Check Your Eligibility - You may qualify if you meet the rules above.
2. Find the right program for you - Use Vestwell's search tool to find an ABLE program in your state or a national option that serves you.
3. Review Your Options - Each program has its own investment options, fees, and extras like prepaid cards or gifting pages.
4. Open Your Account - Apply through your chosen ABLE program. You'll provide your information, includingSSN/ITIN, and will answer a few simple questions to set up your account. You can do it in under 10 minutes!
5. Start Saving & Using Your Account - Make your first deposit, invite friends and family to contribute, and start saving for the future, or spending for tomorrow.

Myths vs. Facts

• Myth: "If I save over $2,000, I'll lose SSI."
• Fact: You can save up to $100,000 in an ABLE account without affecting SSI resources. Above that, SSI may pause. When your balance is back under $100,000, you can contact Social Security to restart payments. Medicaid and other federal programs are not affected, regardless of your account balance.

• Myth: "ABLE accounts are just checking accounts.."
• Fact: ABLE accounts can be used for daily or weekly spending - but they are also powerful investment tools that can be used for tax-free long-term savings, like a retirement account or trust. Think of it as a super-powered Roth IRA and a checking account all in one.

• Myth: "Saving in ABLE is complicated."
• Fact: ABLE accounts are designed to make saving straightforward. Add money with direct deposits from your job or the SSA. Easily spend your funds with prepaid debit cards. Billions of dollars are saved in ABLE accounts all across the country. And if you get stuck — we’re here to help!

Contributions and tools

• Annual contribution limit - There is a yearly cap set by the IRS. In 2026, the standard contribution limit for non-working account owners is $20,000.
• ABLE to Work - If you earn income, you may be able to add more on top of the yearly cap — up to $15,650 or more in 2026. 
• Who can contribute - You, family, friends, even employers and trusts can add money to an account, up to the allowed limits.
• Spending tools - Vestwell programs offer prepaid debit cards for easy access to your funds. The cards can be customized with spending limits, blocks on specific stores, and more, if that’s what’s best for your family.

Quick Answers to Common Questions

• Can my family help me fund my ABLE account? Yes. Anyone can contribute, up to the yearly limit. Many programs offer simple gifting tools.
• Can I change my investments? Yes. Most ABLE programs let you change your investment selection a limited number of times each year. Check with your state program for specific details on their investment options.
• What is an Authorized Legal Representative (ALR)? An ALR (like a parent, guardian, or someone with power of attorney) can open or help manage an account if needed, following program rules.
• Do programs have different fees? Yes. Each program sets its own fees and features. Compare before you enroll.
• Can I open an account in another state’s program? Many programs accept non-residents. If your state doesn’t offer ABLE, pick anout‑of‑state program that serves you.

Ready to Learn More About Your ABLE Options?

You're closer than you think. Use Vestwell's search tool to find an ABLE program and get started today.

This guide shares general information and may change. Always read your program’s official documents and talk with a professional if you need advice. You could lose money by investing in an ABLE account. Consider investment objectives, risks, charges and expenses before investing.