SCIWhat an ABLE account is
An ABLE account is a tax-advantaged savings/investment account for people with disabilities. Money in it doesn't count against SSI's $2,000 limit (up to a $100,000 balance) or against Medicaid — so people on SSI can actually save. Growth and withdrawals for qualified disability expenses are tax-free.
2026 contribution limits
In 2026 you can contribute up to $19,000 per year (this tracks the IRS gift-tax annual exclusion).
If you work and don't participate in an employer retirement plan, you can add even more under ABLE to Work — up to $15,650 more in 2026 (higher in Alaska and Hawaii), or your earnings, whichever is less.
Who's eligible — the big 2026 expansion
Until now, ABLE accounts were limited to people whose disability began before age 26. Starting January 1, 2026, that rises to before age 46 — opening ABLE accounts to an estimated 6 million more Americans, including many people who sustained a spinal cord injury or other disability as adults.
What you can spend it on
"Qualified disability expenses" are broad: housing, transportation, health and assistive technology, education, employment training, legal and financial services, and basic living expenses. Keep receipts. (Note: at the account-holder's death, remaining funds may be subject to Medicaid recovery in some states.) Open one through any state's program at the ABLE National Resource Center.
Special needs trusts
For larger sums — an inheritance, a settlement, family gifts — a special needs trust (SNT) holds money for your benefit without counting against SSI/Medicaid:
- First-party (self-settled / "d4A") — holds your own money (e.g., a personal-injury settlement). Required Medicaid payback at death.
- Third-party — funded by family/others (ideal for an inheritance or gifts). No Medicaid payback; whatever's left goes to whoever you name.
- Pooled ("d4C") — managed by a nonprofit that pools many beneficiaries' funds; lower cost and no minimum age.
SNTs are powerful but technical — use a special-needs / elder-law attorney. ABLE accounts and SNTs are often used together.
Sources: ABLE National Resource Center, IRS 2026 inflation adjustments, SSA: ABLE accounts.