ABLE Accounts 101

At Ascensus, we offer a variety of financial services to help people meet their financial goals. One of these types of offerings is an ABLE account, which allows individuals with disabilities and blindness and their families to save for the things they need today and in the future.


What Is an ABLE Account?

An ABLE account is a tax-advantaged savings account for individuals with disabilities and their families.


What Does an ABLE Account Do?

When the Achieving a Better Life Experience (ABLE) Act of 2014 was signed, it declared that account owners are deemed the account beneficiary, and income earned by ABLE accounts will not be taxed when used for qualified disability expenses. ABLE accounts offer different investment options to help you save for what matters most. For convenience, many ABLE programs will also offer a debit card option, making it easier to use your savings when you need them.


How Can Contributions Be Used?

While contributions to an ABLE account are not tax-deductible, all of the investment earnings remain untaxed, provided that the money taken from the account is used for “qualified disability expenses.” Such expenses include:

  • Medical treatment and health care expenses
  • Assistive technology
  • Housing and transportation
  • Personal support services
  • Financial management and administrative services
  • Education and employment training and support


Who Can Contribute?

The beneficiary, their family, friends, or whoever wishes to contribute to the ABLE account may do so with after-tax dollars. Some states may allow for state income tax deductions for ABLE account contributions.


Who Is Eligible?

The ABLE Act limits eligibility to individuals whose onset of disability occurred prior to turning 26, and who are eligible for SSI and/or SSDI. However, you may also be eligible to open an ABLE account if you meet Social Security’s definition for significant functional limitations.


The Big Picture

Millions of individuals with disabilities and their families rely on a wide variety of public benefits for income, food, health care, and housing assistance. In order to retain their eligibility for these public benefits, individuals must report if they exceed $2,000 in cash savings, retirement funds, and other items of value.

Fortunately, with ABLE accounts, eligible individuals and their families can save up to $100,000 before public benefits may be impacted.


Ascensus Can Help You Get Started

The ABLE Act helps those with disabilities and their families to save for today and the future.

In addition to helping individuals take advantage of ABLE accounts, we provide a number of ways to earn retirement plan CE credits, in addition to HSA education in our Continuing Education section.


For further information on ABLE, please visit our ABLE overview page today.