Key Points
- Tax-free savings for people with disabilities: ABLE accounts let eligible individuals save and invest without losing benefits like Medicaid or SSI.
- Contribution Limits: You can contribute up to $19,000 per year.
- ABLE Age Limits Increasing: The age of disability onset requirement is increasing from 26 to 46, greatly expanding access.
Saving for the future is hard enough, but for families of people with disabilities, it used to be almost impossible. Before 2014, setting aside more than a few thousand dollars risked losing essential benefits like Medicaid or SSI. The ABLE Act changed that.
With a 529A ABLE account, individuals with disabilities can now save and invest money tax-free, without jeopardizing critical support programs.
In this guide, we’ll cover everything you need to know about ABLE accounts: what they are, who qualifies, contribution limits for 2026, how they compare to "normal" 529 college savings plans, and the states that currently offer them.
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How Does The 529A ABLE Act Work?
Families with a member who has disabilities or the beneficiaries themselves can open up a tax-free 529 ABLE account and accumulate up to $19,000 per year while receiving government assistance (see the 529 plan contribution limits).
Additionally savings of up to $100,000 total can be accumulated and the beneficiary will not have to fear losing access to vital public benefits such as Supplemental Security Income (SSI). Opportunities to invest and earn returns on those investments are also available with a 529 ABLE account.
In both scenarios, the money in the 529 ABLE account is not taxed. Withdrawals from the account that are applied towards the care of the beneficiary are also tax-free. See the IRS qualified disability expenses here.
It is important to note however, that while federal taxes may not be charged on qualifying expenses, some states will charge a state tax on the earnings in your 529 ABLE account.
Deposits into the 529 ABLE account can be made through contributions from friends and family to the account, an automated withdrawal from your regular bank account to the 529 ABLE account or by check.
Who Is Eligible To Open a 529 ABLE Account?
While each state’s requirements might differ slightly, in general in order open a 529 ABLE account , these criteria should be met:
- An individual with onset of disability before age 26 (starting in 2026, the age limit will increase to 46)
- You are eligible to receive benefits based on disabilities such as Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI)
- You have a disability certification including an official diagnosis signed by a physician
Which States Offer The 529 ABLE Program?
As of this writing, you can open 529 ABLE accounts in 42 states and the District of Columbia. You can visit your state’s website below to get more information.
Some of the states on this list do not require you to be a resident of that state to open an account.. Thus, if you live in a state that is not currently offering 529 ABLE accounts, you can seek out a state that has the no residency requirement.
List Of States That Offer The ABLE Program And Their Websites
Here are the states that currently offer 529ABLE programs:
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut - No program
Delaware
District of Columbia
Florida
Georgia
Hawaii - No program
Idaho - No program
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine - No program
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota - No program
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota - No program
Tennessee
Texas
Utah- No program
Vermont
Virginia
Washington
West Virginia
Wisconsin - No program
Wyoming
Final Takeaways
For families supporting a loved one with disabilities, even saving a few thousand dollars used to risk losing essential benefits. The ABLE Act changed that - creating a way to save and invest tax-free without jeopardizing support programs.
Common ABLE Account Questions
What is a 529A ABLE account?
A 529A ABLE account is a tax-advantaged savings plan for individuals with disabilities. It allows them to save and invest money without losing access to means-tested federal benefits like Medicaid and SSI.
Who qualifies for an ABLE account?
Anyone who developed a disability before age 26 is eligible. Starting in 2026, the age threshold will increase to 46, expanding access to millions more Americans.
How much can you contribute to an ABLE account in 2025?
The annual contribution limit is $19,000 (the federal gift tax exclusion).
Are ABLE account contributions tax deductible?
At the federal level, contributions are not deductible. However, some states offer tax deductions or credits for contributions to their own ABLE programs.
What can ABLE account funds be used for?
Funds can be used for “Qualified Disability Expenses,” which include housing, education, transportation, assistive technology, and healthcare.
Can I open an ABLE account in another state?
Yes. Many states allow non-residents to open accounts in their programs. If your state doesn’t offer an ABLE plan (or doesn’t provide tax incentives) you may be better off using another state’s program.
What’s the difference between an ABLE account and a 529 college savings plan?
Both are tax-advantaged savings vehicles, but they serve different purposes:
- 529 plans are designed for education expenses.
- 529A ABLE accounts are specifically for individuals with disabilities and cover a much wider range of qualified expenses.
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Editor: Clint Proctor Reviewed by: Chris Muller
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.