ABLE to Save and Spend

The financial stuff can get complicated for young adults and their families. Benefits, trusts, asset and resource limitations. It’s a lot.

We don’t want to overwhelm you or them. Sometimes tidbits are more helpful than a complete information overload. Today we’ll zero in on ABLE accounts.

The basics. Available in most states, ABLE accounts are a relatively new way to save—much like 529 college saving accounts—designed specifically for people with disabilities. Individuals and families find them useful for managing earnings and funds and for helping individuals save for future goals while still maintaining their Medicaid and Social Security benefits.

Things students and families will want to know:

  • Individuals can’t set up an ABLE account at their local bank. States have their own ABLE programs that enroll individuals. Indiana’s is INvestABLE. (You can compare and contrast ABLE options and choose to enroll in another state’s ABLE plan. But individuals may only have one ABLE account.)
  • In 2024, ABLE account holders can contribute $18,000 to an account. More if that person is working, thanks to the ABLE to Work Act.
  • People with disabilities who receive Medicaid and Medicaid waiver services need to keep less than $2,000 in their combined checking and savings accounts. Individuals and their Representative Payees (a person authorized by Social Security to manage a recipient’s funds) can maintain that balance by moving funds into an ABLE account each month, so they won’t lose benefits and services.
  • ABLE funds can be used to pay for almost anything that improves quality of life. Think big things: an apartment downpayment. Think typical expenses: utilities or rent. Think fun things: a laptop upgrade, a vacation with family, a gym membership.

Resources