Saving more than $2,000 can put a monthly disability check at risk, and for years that limit left many Americans with little room to build a cushion. There is a tool designed for exactly that problem, and far more people can use it than a year ago: the ABLE account.

ABLE stands for Achieving a Better Life Experience. It is a tax-advantaged savings account for people with disabilities, and it works differently from a regular bank account. We explain who can open one, how much you can put in and how it interacts with SSI and SSDI benefits.

What is an ABLE account?

Think of it as a savings or investment account in the owner’s name. Congress created these accounts in 2014, and states run the programs. Money can be added by the owner, relatives, friends or even an employer.

The earnings grow tax-free, and withdrawals are also tax-free when they pay for qualified disability expenses. There is no income limit to open one, but each person can have only one account.

Who qualifies?

Since January 1, 2026, the disability must have begun before age 46. The earlier cutoff was age 26, so the change opened the door to millions of people whose condition appeared later in life.

The age refers to when the disability started, not how old you are today. A 60-year-old whose disability began at 40 can qualify. You generally meet the rule in one of two ways:

You already receive SSI or SSDI because of a disability that began before 46
A physician certifies a qualifying condition that began before that age and that lasts, or is expected to last, at least one year

How much money can you put in?

The annual contribution limit for 2026 is $20,000, counting deposits from everyone combined. People who work may be able to add more, and the amount varies by location and situation.

States also set an overall balance cap, which ranges from about $235,000 to $675,000 depending on the plan.

Will it affect your SSI or Medicaid?

This is the main advantage. According to the Social Security Administration (SSA), the first $100,000 in an ABLE account is not counted toward the SSI resource limit of $2,000 for individuals and $3,000 for couples.

If the balance goes above $100,000 by enough to exceed that limit, SSI payments are suspended until the balance falls, but Medicaid continues. One detail matters for housing: if you take money out for rent or a mortgage, spend it in the same month to avoid affecting your SSI.

What can you spend the money on?

The list is broad and does not have to be strictly medical:

Housing, including rent, mortgage payments and utilities
Groceries and basic living costs
Health care and personal support services
Transportation
Education and job training
Assistive technology
Legal fees and wellness programs

Keep your receipts. If you use the money for something else, the earnings portion may be taxed and face a 10% penalty. Some states can also seek repayment for Medicaid costs from what remains after the owner dies, so check your plan’s rules.

How do you open one?

Most plans let you sign up online, often with a small first deposit. Start by looking at your home state’s plan and comparing fees and investment options. North Dakota, South Dakota and Wisconsin do not run their own programs, but residents can look at plans from other states that accept out-of-state savers.

Have your benefit information ready, or a physician’s certification if you don’t receive SSI or SSDI. Then tell the SSA about the account if you get benefits. You can read the agency’s guide in its spotlight on ABLE accounts. If you work while receiving SSDI, it is also worth reviewing how the trial work period applies to you.