Achieving a Better Life Experience (ABLE) Act
The Achieving a Better Life Experience (ABLE) Act was signed into law on December 19, 2014. It made a new type of savings option available for families of individuals with disabilities.
The ABLE Act allows families the opportunity to set up tax-exempt 529A savings accounts, called ABLE Accounts, for disability-related expenses.
This law amended the federal tax code and authorized the establishment of private tax-advantaged savings accounts that can help you save for long-term expenses without sacrificing eligibility for public benefits such as Medicaid and Supplemental Security Income (SSI). ABLE accounts are modeled after the current 529 education savings plans that help families save for future college costs. Once an account is established for a beneficiary, account contributions will accumulate tax deferred and any earnings will be tax free at the federal level if the money is used for qualified expenses.
ABLE accounts enable people with autism and their families to save for housing, education, transportation, medical and other expenses related to their disability. This allows individuals with disabilities, including autism, to save for their future needs without losing access to other resources.
The ABLE Age Adjustment Act passed in December 2022 as part of the Consolidated Appropriations Act of 2023. The law raised the age threshold for onset of a disability needed for accessing a tax-favored ABLE account from 26 years of age to 46. This change allows more adults with disabilities to open ABLE accounts to save for long-term care without losing federal benefits.
As of September 2023, $1.551 billion in assets have been invested in ABLE Accounts across the country.
Each state is responsible for establishing and operating an ABLE program. For information on your states' ABLE program, click on the map below.
For more information on ABLE and our advocacy efforts, check out:
- Social Security Administration's 2023 Edition on ABLE Accounts
- A previous webinar by our Senior Vice President of Advocacy, Stuart Spielman
- ABLE National Resource Center