In general, individuals with disabilities can only have $2,000 in countable assets at any given time in order to remain eligible for many federal means-tested benefits programs, such as Supplemental Security Income (SSI). Under ABLE, eligible individuals or their caregivers may establish an ABLE savings account that is not a countable asset, so it will not affect their eligibility for SSI (up to $100,000), Medicaid and other public benefits. ABLE accounts provide individuals with disabilities and their families the ability to save money for their future and to improve their quality of life.

An ABLE account also has tax advantages. Contributions to ABLE accounts are made on an after-tax basis. Earnings from ABLE funds grow tax-deferred and are tax-free if used for qualified disability expenses. Contributions to the account may be made by any person. Funds in the account may be used for “Qualified Disability Expenses” which include: Education, Housing, Transportation, Employment training and support, Assistive technology and related services, Health, Prevention and wellness, Financial management and administrative services, Legal fees, Expenses for ABLE account oversight and monitoring, Funeral and burial, and Basic living expenses.

There are two requirements to be eligible for an ABLE account: an age requirement and a severity of disability determination. The person’s disability must have occurred before age 26. Additionally, the disabled individual must have “marked and severe functional limitations” (Social Security definition of disability). An individual whose disability occurred prior to age 26 and is already receiving SSI and/or SSDI is automatically eligible to establish an ABLE account. Those who are not recipients of SSI and/or SSDI but still meet the age of onset disability requirement will be eligible to open an ABLE account upon obtaining a disability certification from their physician.

Note that the age-of-onset requirement will be changing, expanding eligibility for an ABLE account. Under federal law effective January 1, 2026, to be eligible for an ABLE account, the person’s disability must have occurred before the age of 46.

Pursuant to federal law, the basic annual contribution limit for an ABLE account is $19,000 (for 2025). This basic annual limit is the sum of any contributions by the beneficiary, family and/or friends. However, if the account owner is working but not participating in an employer-sponsored retirement plan, the account owner can contribute an additional amount each year. The basic annual contribution limit is subject to change from year to year. See the Plan Disclosure Booklet for more information on contribution limits.

The aggregate contribution limit for each account (for all years) is currently $501,000. If an account balance reaches $501,000 new contributions into the ABLE account will not be accepted until the balance is reduced through one or more withdrawals.

Signing up for an ABLE account is quick and easy!

Our goal is to provide programs to Kansas families to help them plan and prepare for the future. Contact us to find out how we can help you!