An ABLE account (Achieving a Better Life Experience, also called a 529A account) is a tax-advantaged savings account for eligible individuals with significant disabilities, established under the Stephen Beck, Jr. Achieving a Better Life Experience Act of 2014.
Eligibility: - Individual must have a significant disability that began before age 26 (expanded from 26 to 46 by the SECURE 2.0 Act, phased in by 2026). - Must be eligible for SSI or SSDI, OR certify a qualifying disability.
Contribution limits (2025): - Annual: Up to $19,000 (annual gift exclusion amount). - Working individuals: May contribute additional amounts up to their earned income (up to the poverty line for a single-person household, ~$15,060 in 2025). - Lifetime: Varies by state (often $300,000–$500,000).
Tax treatment: - Contributions are NOT federally tax deductible. - Growth is tax-free if used for qualified disability expenses. - Qualified withdrawals are tax-free.
Qualified disability expenses: Education, housing, transportation, employment training, assistive technology, personal support services, health, financial management.
Asset protection: Up to $100,000 in ABLE accounts is excluded from SSI's $2,000 asset limit (crucial for maintaining benefit eligibility).
Rollover: Can roll over funds from a 529 education plan into an ABLE account for the same beneficiary (or eligible family member).
> Exam tip: ABLE accounts protect disability benefit eligibility — the first $100,000 doesn't count toward SSI limits. The age-of-onset expansion to 46 (SECURE 2.0) significantly broadens eligibility and is a current exam topic.