Who Qualifies for an ABLE Account: Eligibility Requirements

Get to Know the Age, Disability, and Financial Requirements of an ABLE Account

An ABLE account (Achieving a Better Life Experience account) is a powerful financial tool for individuals with disabilities, allowing them to save for their future without jeopardizing access to essential government benefits. These tax-advantaged accounts are designed to support disability-related expenses such as housing, education, healthcare, and transportation. By offering a way to save without risking benefits, ABLE accounts empower individuals and families to plan for a more secure financial future. However, not everyone qualifies to open an ABLE account. Understanding the eligibility requirements is crucial for those seeking to take advantage of this tax-efficient savings option.

Basic Eligibility Requirements

To qualify for an ABLE account, an individual must meet three primary criteria:

1. Disability Onset Before Age 26: The individual’s disability must have occurred before their 26th birthday. This rule applies regardless of the individual’s current age at the time of application. For example, a 40-year-old who developed a qualifying disability at age 18 would still be eligible.
2. Significant Disability: The individual must have a condition that qualifies them for benefits under the Supplemental Security Income (SSI) program or the Social Security Disability Insurance (SSDI) program. Alternatively, individuals who do not receive SSI or SSDI can self-certify by providing a physician’s certification that their condition results in significant functional limitations.
3. Low Financial Standing: The individual must fall below certain income and resource limits. Usually these are below the federal poverty limit and below $2000 in countable resources. Countable resources include cash, but do not include some other resources such as one home and one car.

What Disabilities Qualify?

ABLE accounts are designed to support individuals with a wide range of disabilities, including both physical and mental impairments. Qualifying conditions include, but are not limited to:

• Autism spectrum disorders
• Down syndrome
• Blindness or significant vision impairments
• Paralysis or mobility impairments
• Chronic conditions like epilepsy or mental health disorders

The key factor is that the condition creates significant limitations in the individual’s ability to perform daily activities or maintain employment.

Documentation Requirements

To open an ABLE account, applicants must provide proof of eligibility. This typically includes:

• Proof of SSI or SSDI Benefits: A benefits award letter from the Social Security Administration is usually sufficient.
• Physician’s Certification: For individuals not receiving SSI or SSDI, a licensed physician must certify that the disability meets the criteria outlined by the Social Security Act and occurred before age 26.

It is important to check the specific requirements of the state program where the account will be opened, as documentation standards may vary.

Easy to Set Up

One of the advantages of ABLE accounts is how simple they are to set up. Most state programs offer an easy online application process, making it quick and straightforward to open an account. Families can compare state programs to find the best fit and complete the process in just a few steps.

Why Eligibility Matters

Meeting the eligibility requirements for an ABLE account allows individuals with disabilities to access a financial tool that offers independence and security. These accounts provide an opportunity to save for the future without risking vital benefits. This empowers individuals and their families to plan for long-term needs.

Learn More

For further details on ABLE accounts, including how to set one up and the rules governing their use, explore our webinar, Gifting to Persons with Disabilities Through ABLE Accounts.