Able Savings Account

What is an Able account? An able account is an account for a disabled individual designed to aid in saving money without affecting benefits, with limits of course. In order to open an Able account you must have been disabled before the age of 26, this age limit is expected to change in the near future but as of April 2025 the age is 26. The account may be opened by the disabled individual or a legal representative.

Normally SSI counts assets over $2000 against benefits. This limit includes parents of disabled children. This makes it very difficult to save up for necessary, but very expensive equipment not covered by insurance. Able accounts allow you to save up to $19,000 a year with a lifetime cap of $100,000, without affecting your benefits. This is not a family savings account, this account is solely for the benefit of the disabled individual, therefore, there are limits on how withdraws must be spent.

Most states have their own able programs. I happen to live in California and chose to open a CalAble account. You can check your state for their Able program, although many states allow you to open an account even if you are not a resident of that state. Some of the rules and fees will vary from state to state but I will go over some of the major rules, always double check that these rules apply in your state.

At a CalAble webinar I recently attended the rules for using the funds withdrawn from an able account were covered. When funds are withdrawn they must be used to improve the quality of life of the disabled individual named on the account. It cannot be used to benefit others. Anything related to the health, independence, education, or quality of life of the disabled person is allowed. If the money will be used for the housing expenses of the individual that money must be withdrawn and used in the same calendar month. CalAble has a prepaid visa card you can sign up for that can be loaded with funds from the account. This card is not currently compatible with digital wallets.

CalAble is currently partnered with Vestwell banking and the money can placed in investment portfolios.

Third parties can contribute to the Able account in the form of gifts and those gifts will not count as income. If you use CalAble there website has an option to enable gifts directly to the account.

The money in Able accounts CANNOT be used for: 1. Gifts for others 2. Illegal purchases 3. Gambling,

There is more information on the Able accounts for various states at https://www.ablenrc.org/compare-states . Check for details on your own state’s Able account, but don’t forget you may be able to open an Able account for a state you are not a resident of, BUT you may not own more than one Able account at a time.