What are the benefits of an ABLE account?

One of the most significant advantages of ABLE accounts relates to the ability to qualify for, or remain on, government assistance. Generally, funds saved in an ABLE account are exempt from resource limits. Saving in an ABLE account does not impact Medicaid benefits, regardless of how much money is in the account.

How much can you contribute to an ABLE account?

For example, the $16,000 annual contribution limit would be met by parents contributing $10,000 to their child's ABLE account and rolling over $6,000 from a 529 plan to the same ABLE account. States can offer ABLE accounts to help people who become disabled before age 26 or their families pay for disability-related expenses.

Who can contribute to an ABLE account?

Anyone can contribute to an ABLE account, including the account owner, family and friends. Annual contributions to an ABLE account are currently limited to $18,000 (2024). This amount is tied to the federal annual gift tax exclusion limit and may be adjusted periodically to account for inflation.