The United States Social Security has taken an important step to improve the lives of millions of people with disabilities. Thanks to ABLE (Achieving a Better Life Experience) accounts, it is now possible to save up to $100,000. All this, without losing key benefits like Supplemental Security Income (SSI) and Medicaid.
ABLE accounts are tax-advantaged savings accounts designed for people with disabilities. They allow covering disability-related expenses, such as housing, transportation, education, health, assistive technology, and personal services. The earnings obtained in these accounts are tax-exempt if used for these purposes.
Social Security Takes Another Step: ABLE Accounts, a Relief for Many U.S. Families
To be eligible, the disability must have begun before the age of 26. However, starting January 1, 2026, this limit will be extended to 46 years by the ABLE Age Adjustment Act. Additionally, it is necessary to meet certain criteria established by Social Security or have a medical certification confirming the disability.
Before ABLE accounts, people with disabilities faced strict limits on their savings to maintain eligibility for programs like SSI and Medicaid. With these accounts, they can save up to $100,000 without affecting these benefits. This provides greater financial stability and the possibility to plan long-term without fear of losing essential support.
Additional Benefits from the IRS
The Internal Revenue Service (IRS) also offers incentives to encourage the use of ABLE accounts. For example, beneficiaries may be eligible for the Saver's Credit, which allows reducing the tax bill based on contributions made to the account.
Additionally, workers with disabilities can make additional contributions, up to the amount of their annual salary or the federal poverty level. This allows increasing savings beyond the standard limit.
Peace of Mind and Security for the Future
ABLE accounts represent a significant advancement in the financial inclusion of people with disabilities in the United States. They offer a powerful tool to cover disability-related expenses without compromising essential benefits.
For more information and to learn how to open an ABLE account, it is recommended to visit the official IRS Internal Revenue Service website. This special gesture from Social Security and the IRS provides millions of Americans the opportunity to live with greater dignity, independence, and peace of mind.