Special Needs Planning
ABLE accounts, explained by someone who actually opens them
The $2,000 SSI resource limit puts families in a straitjacket: help your adult child save, and you can cost them their benefits. ABLE accounts exist to cut that knot.
What is an ABLE account?
An ABLE account is a tax-advantaged savings and investment account for people whose disability began before age 46. Money in it grows tax-free when used for qualified disability expenses, and the first $100,000 doesn't count against the $2,000 SSI resource limit.
The problem ABLE accounts solve
SSI stops paying once a person has more than $2,000 to their name. That rule, written decades ago, meant a person with a disability could never build even a modest emergency fund without risking the benefits that cover their basics. An ABLE account creates a protected lane: your child can own it, use it, and still keep SSI and Medicaid.
The 2026 change is a big deal
Until this year, ABLE accounts were limited to people whose disability began before age 26. As of January 1, 2026, that cutoff moved to age 46. Millions of people became eligible overnight, including a large number of veterans whose service-connected disabilities began in their late twenties and thirties. If you looked into ABLE years ago and got turned away on age, look again.
The numbers that matter
- Annual contributions are capped at the federal gift-tax exclusion amount ($19,000 in 2025; the IRS adjusts it periodically). An account owner who works can add more through ABLE to Work.
- SSI ignores the first $100,000 of ABLE account value. Above that, SSI suspends until the balance drops, while Medicaid continues.
- One account per person, opened in most states regardless of where you live. Maryland ABLE is our home program, and we help families choose among state programs on fees and investment menus.
- Qualified expenses are broad: housing, education, transportation, assistive technology, health, basic living costs. Broader than most families expect.
- 529 college savings can roll into an ABLE account, which rescues money parked in the wrong bucket before a diagnosis.
ABLE account vs. special needs trust
Families usually don't need to pick a winner. The two tools do different jobs, and most complete plans use both.
| ABLE account | Special needs trust | |
|---|---|---|
| Who controls it | Your child (or you, as authorized legal representative) | A trustee you choose |
| Best for | Day-to-day spending, independence, small-to-mid savings | Inheritances, life insurance, larger sums |
| Contribution limit | Annual cap (gift-tax exclusion) | None |
| SSI treatment | First $100,000 exempt | Exempt if properly drafted |
| Cost to set up | Minutes, online, minimal cost | Attorney-drafted; real but worthwhile cost |
| Medicaid payback at death | Yes, in many states | Third-party trusts: no. First-party trusts: yes. |
The longer version is a conversation. The trust side has its own page: special needs trusts, and the interplay between the two is exactly the kind of thing we map in a Custom Special Needs Plan™.
Where this fits
We help families open the right ABLE program, set a contribution rhythm that respects the annual cap, invest the balance sensibly, and coordinate it with trusts, benefits, and your own retirement. It's one piece of the plan, not the whole plan.
Written by Colin Meeks, CFP® · Maryland Financial Advocates · Last updated August 6, 2026
Questions people actually ask
Anyone whose qualifying disability began before age 46 and who either receives SSI/SSDI or has a disability certification with a physician's diagnosis. The age threshold rose from 26 to 46 on January 1, 2026.
Start with a 15-minute call. It's complimentary.
Tell us what's on your plate. We'll tell you honestly whether we can help, and you'll know exactly what working together costs before you commit to anything.
Prefer the phone? Call 410-663-0700 and ask for Colin.