ABLE Account

What it means

A tax-advantaged savings account for a person whose disability began before a federal age cutoff (raised to 46 starting in 2026). Annual contributions are capped by federal law and adjusted yearly. Earnings grow tax-free. Withdrawals are tax-free as long as they are used for qualified disability expenses — housing, transportation, education, assistive technology, health, employment training, and many other categories. Money in the account does not count against SSI or Medicaid asset limits up to a federal balance threshold. Above that threshold, SSI is suspended but not terminated. Medicaid coverage is unaffected at any balance. NY State residents also get a state tax deduction on contributions. NY's program is at mynyable.org. ABLE is more flexible than a Special Needs Trust for everyday spending and is much easier and cheaper to set up. Many families use both — ABLE for day-to-day, SNT for larger inheritances or settlements.

When you might hear this

An ABLE account is a tax-advantaged savings account for a person with a disability. Money in the account does not count against SSI and Medicaid asset limits up to a federal threshold. New York's program is at My NY ABLE.

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