ABLE Account Calculator
Calculate ABLE account growth projections for individuals with disabilities without affecting benefits eligibility.
Employment Income Bonus
Employed ABLE account holders can contribute additional funds beyond the standard annual limit.
Projected Account Breakdown After 20 Years
Projected Balance After 20 Years
$233,956
Qualified Disability Expenses (QDEs)
ABLE funds can be used tax-free for expenses related to the beneficiary's disability:
- Beneficiary must have disability that began before age 26
- Non-qualified withdrawals subject to income tax plus 10% penalty on earnings
- Upon death, remaining funds may be used to repay Medicaid
- State tax benefits vary - check your state's ABLE program
- Consider your state's ABLE plan vs. other states (you can use any state's plan)
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About This Calculator
Major changes in 2026 make ABLE accounts more valuable than ever: the age-of-onset requirement expanded from 26 to 46, opening eligibility to an estimated 6.1 million more Americans with disabilities. ABLE (Achieving a Better Life Experience) accounts provide a tax-advantaged way for people with disabilities to save money without losing eligibility for means-tested benefits like SSI and Medicaid. Our ABLE Account Calculator helps you project growth, understand the new 2026 contribution limits ($20,000 annual + $15,650 ABLE-to-Work bonus), and plan for long-term savings. Unlike regular savings accounts that count against SSI's $2,000 asset limit, the first $100,000 in an ABLE account is excluded—allowing you to build real financial security while preserving essential benefits. With tax-free growth similar to 529 college savings plans, ABLE accounts are one of the most powerful financial tools available for individuals with disabilities. Whether you're opening a new account, rolling over funds from a 529 plan, or maximizing contributions for a family member, this calculator shows how strategic saving can build significant wealth over time.
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How to Use the ABLE Account Calculator
- 1Enter your planned monthly contribution (up to $1,667/month to stay within the $20,000 annual limit).
- 2Add your current ABLE account balance, if any.
- 3If employed without an employer retirement plan, enable the ABLE-to-Work bonus and enter your annual wages.
- 4Input any planned 529 plan rollover amount (now permanently allowed).
- 5In advanced mode, adjust growth rate assumptions (default 6%) and projection period.
- 6Review the projected balance timeline showing when you approach the $100,000 SSI threshold.
- 7See the impact analysis showing SSI/Medicaid benefit preservation.
Formula
Future Value = Monthly Contribution × ((1 + r)^n - 1) / r + Current Balance × (1 + r)^nABLE account growth is calculated using the compound interest formula, where 'r' is the monthly growth rate and 'n' is the number of months. Your contributions grow tax-free, meaning you don't pay capital gains tax on investment earnings, and withdrawals for qualified disability expenses are also tax-free. The calculator factors in the annual contribution limit ($20,000 standard + up to $15,650 ABLE-to-Work bonus for eligible workers), projects growth using historical market averages, and flags when your balance approaches the $100,000 SSI threshold where benefits would be suspended (though Medicaid remains protected at any balance level).
ABLE Account Contribution Limits (2026)
The 2026 contribution limits have increased and new provisions are now permanent:
Annual Contribution Limit: $20,000
- Increased from $18,000 in 2025
- Tied to but now differs from the federal gift tax exclusion ($19,000)
- Contributions can come from anyone (family, friends, the beneficiary)
- Unused contribution room does NOT carry over to future years
ABLE-to-Work Bonus: Up to $15,650 Additional
- Now permanent (was set to expire end of 2025)
- Available if the beneficiary has earned income AND does NOT participate in employer retirement plan
- Additional contribution equals the lesser of:
- Gross wages for the year, OR
- Federal poverty level ($15,650 for continental US in 2026)
- Higher for Alaska ($19,550) and Hawaii ($17,990)
- Maximum total annual contribution with bonus: $35,650
Lifetime Maximum: Varies by State
- Tied to state's 529 plan limits (typically $235,000 to $574,050)
- Once reached, no additional contributions allowed
- Growth continues tax-free beyond this limit
529 Plan Rollovers: Now Permanent
- Can roll over 529 education savings into ABLE
- Up to annual ABLE contribution limit per year
- 5-year proration option for larger rollovers
- Great option if education plans are no longer needed
Expanded Age Eligibility: 46 is the New 26
Effective January 1, 2026, the ABLE Age Adjustment Act dramatically expanded eligibility:
Previous Rule (2016-2025):
- Disability onset must occur before age 26
- Left out millions with disabilities acquired later in life
New Rule (2026 and Beyond):
- Disability onset must occur before age 46
- Estimated 6.1 million more Americans now eligible
- Same disability criteria otherwise
Who Qualifies for ABLE:
You're automatically eligible if you:
- Receive SSI (Supplemental Security Income)
- Receive SSDI (Social Security Disability Insurance)
- Receive disability benefits from railroad retirement
You can self-certify eligibility if you:
- Have a condition on SSA's Compassionate Allowances list
- Meet Social Security's disability criteria (even if not receiving benefits)
- Have a signed physician's diagnosis meeting SSA standards
Newly Eligible Conditions (Examples):
| Condition | Typical Onset Age | Previously Excluded | Now Eligible |
|---|---|---|---|
| Multiple Sclerosis | 20-40 | Many excluded | All eligible |
| ALS (Lou Gehrig's) | 40-70 | Most excluded | All eligible if before 46 |
| Rheumatoid Arthritis | 30-50 | Many excluded | All eligible if before 46 |
| Lupus | 15-45 | Some excluded | All eligible if before 46 |
| Traumatic Brain Injury | Any age | Many excluded | All eligible if before 46 |
| Spinal Cord Injury | Any age | Many excluded | All eligible if before 46 |
Impact on SSI and Medicaid Benefits
ABLE accounts are specifically designed to preserve means-tested benefits:
SSI (Supplemental Security Income)
- First $100,000 in ABLE account is EXCLUDED from SSI's $2,000 resource limit
- Above $100,000: SSI payments are SUSPENDED (not terminated)
- Benefits automatically resume when balance falls below $100,000
- ABLE balance never counts toward initial SSI eligibility determination
Medicaid
- ABLE balance does NOT affect Medicaid eligibility—at ANY amount
- No dollar limit—even $500,000+ in ABLE is protected
- This is a crucial advantage over regular savings
- Medicaid coverage continues regardless of ABLE growth
Comparison: Regular Savings vs. ABLE
| Factor | Regular Savings | ABLE Account |
|---|---|---|
| SSI resource limit | Counts against $2,000 | First $100K excluded |
| Medicaid impact | Counts against limits | Fully excluded (any amount) |
| Tax on growth | Taxable interest | Tax-free growth |
| Tax on withdrawals | Taxable income | Tax-free for QDEs |
| Saver's Credit | Not eligible | Eligible (now permanent) |
The "Housing Expense" Caveat: If you use ABLE funds for housing expenses (rent, mortgage, utilities), your SSI benefit may be reduced by up to 1/3 under the "in-kind support and maintenance" rule. Non-housing qualified disability expenses don't affect SSI. Strategy: Pay housing from SSI; use ABLE for other expenses.
Qualified Disability Expenses (QDEs)
ABLE funds can be withdrawn tax-free for a broad range of expenses related to the beneficiary's disability:
Housing
- Rent or mortgage payments
- Property taxes and homeowner's insurance
- Utilities (electric, gas, water, internet)
- Home modifications for accessibility (ramps, grab bars, widened doorways)
- Note: Housing expenses may reduce SSI by up to 1/3
Transportation
- Vehicle purchase, lease, or modifications
- Maintenance, repairs, insurance, fuel
- Public transportation costs
- Ride-share services (Uber, Lyft)
Education
- Tuition, fees, books, supplies
- Computers and educational software
- Tutoring and educational services
- Special education expenses
Health & Medical
- Medical and dental expenses not covered by insurance
- Therapy services (physical, occupational, speech, behavioral)
- Durable medical equipment (wheelchairs, walkers, hearing aids)
- Health insurance premiums (including Medicare Part B, D, Medigap)
- Mental health services
Employment Support
- Job coaching and vocational training
- Assistive technology for work
- Work-related transportation
- Professional clothing and tools
Assistive Technology
- Communication devices (AAC devices, speech-to-text)
- Computers, tablets, smartphones with assistive features
- Mobility equipment and modifications
- Smart home technology for independence
Personal Support Services
- Personal care attendants
- In-home support services
- Companion care
- Day program fees
Legal & Financial Services
- Estate planning related to disability
- Financial management services
- Guardianship or conservatorship fees
Funeral & Burial
- Pre-paid funeral arrangements
- Burial expenses
ABLE vs. Special Needs Trust: Which Is Right?
Both ABLE accounts and Special Needs Trusts (SNTs) protect benefits while allowing savings, but they serve different purposes:
ABLE Account Advantages:
| Feature | ABLE Account |
|---|---|
| Control | Beneficiary controls account directly |
| Setup cost | Low ($0-$50 to open) |
| Ongoing fees | Low (0.25%-0.50% typical) |
| Access to funds | Debit card, immediate withdrawals |
| Contribution sources | Anyone can contribute |
| Investment options | Simple mutual fund choices |
| State tax benefits | Deductions available in many states |
| Account opening | Online, easy, no attorney needed |
ABLE Account Limitations:
| Limitation | Detail |
|---|---|
| Annual contribution | $20,000 (+$15,650 if ABLE-to-Work eligible) |
| Age requirement | Disability onset before age 46 |
| Medicaid payback | Required at death (most states) |
| Multiple accounts | Only one ABLE account per person |
| Control | Only beneficiary can manage |
Special Needs Trust Advantages:
| Feature | Special Needs Trust |
|---|---|
| Contribution limit | No annual limit |
| Funding capacity | Can hold millions |
| Age requirement | None (for third-party trusts) |
| Medicaid payback | Not required (third-party trusts) |
| Investment flexibility | Broader options |
| Professional management | Trustee handles investments |
When to Use Each:
| Situation | Best Option |
|---|---|
| Small, ongoing contributions | ABLE |
| Large inheritance or settlement | Special Needs Trust |
| Day-to-day expense access | ABLE (debit card) |
| Avoiding Medicaid payback | Third-party SNT |
| Beneficiary wants control | ABLE |
| Beneficiary needs oversight | Special Needs Trust |
| Quick setup needed | ABLE |
Using Both Together: Many families use ABLE for day-to-day expenses (debit card convenience, smaller regular contributions) and a Special Needs Trust for larger assets (inheritance, personal injury settlements). The trustee can contribute up to $20,000/year from the SNT to the ABLE account for the beneficiary's easier access.
ABLE Account Tax Benefits
ABLE accounts offer multiple tax advantages:
Federal Tax Benefits:
1. Tax-Free Growth
- Investment earnings grow tax-free
- No capital gains tax on appreciation
- Similar to Roth IRA treatment
2. Tax-Free Withdrawals
- Withdrawals for qualified disability expenses (QDEs) are 100% tax-free
- No federal income tax on earnings withdrawn for QDEs
- Non-qualified withdrawals: earnings portion taxed + 10% penalty
3. Saver's Credit (Now Permanent)
- Low and moderate-income ABLE contributors may qualify
- Credit of 10-50% of contributions up to $2,000
- Maximum credit: $1,000 per year
- Phases out at higher incomes
4. Gift Tax Exclusion
- Contributions up to $19,000 per contributor per year avoid gift tax reporting
- Contributions above $19,000 (up to $20,000 ABLE limit) require gift tax return but typically no tax due
State Tax Benefits:
Many states offer additional tax benefits:
| Benefit Type | States Offering |
|---|---|
| State income tax deduction | OH, OR, PA, NE, KS, MT, and others |
| State tax credit | Limited states |
| State estate tax exclusion | Varies |
Check your state's ABLE program for specific tax benefits—some only apply if you use your home state's program.
529 Plan Rollover Tax Treatment:
- Tax-free rollover from 529 to ABLE (within annual limits)
- No income tax or penalty on rolled-over amounts
- Must be same beneficiary or family member
- Now permanent under 2026 rules
Choosing an ABLE Program: State Comparison
You can open an ABLE account in any state that accepts out-of-state residents, so compare your options:
Key Factors to Compare:
| Factor | What to Look For |
|---|---|
| Fees | Lower expense ratios and no account fees |
| Investment options | Range of risk levels, target-date funds |
| Minimum contribution | $25 or less is common |
| Debit card | Most programs offer this |
| State tax benefits | Only some states offer deductions for residents |
| Program features | Automatic contributions, gifting portal |
Popular ABLE Programs:
| Program | State | Key Features |
|---|---|---|
| ABLE United | Florida | Low fees, robust app, accepts all states |
| CalABLE | California | Low fees, FDIC-insured option |
| Ohio STABLE | Ohio | One of the first, well-established |
| Virginia ABLEnow | Virginia | Very low fees, user-friendly |
| National ABLE Alliance | Multiple | Partnership of 18+ states |
Should You Use Your Home State's Program?
| If Your State Offers... | Consider... |
|---|---|
| Tax deduction for contributions | Your state's program (to get deduction) |
| No tax benefit | Any program with lowest fees/best features |
| No ABLE program | Any other state's program |
Important Notes:
- You can only have ONE ABLE account (nationwide)
- You can transfer to a different state's program later
- All programs must follow federal ABLE rules
- Investment options and fees vary significantly
- Some programs have minimum balance requirements
Pro Tips
- 💡Take advantage of the new age 46 rule—if your disability began before 46, you're now eligible even if previously excluded.
- 💡Contribute early in the year to maximize tax-free growth time.
- 💡If employed without an employer retirement plan, use the ABLE-to-Work provision for up to $15,650 in additional contributions.
- 💡Use ABLE for non-housing expenses first to avoid any SSI reduction from the housing expense rule.
- 💡Compare ABLE programs across states—fees and investment options vary significantly, and you can use any state.
- 💡Keep your balance under $100,000 if preserving full SSI is important—above this threshold, SSI is suspended.
- 💡Consider rolling over unused 529 plan funds to ABLE (up to annual limit) if education plans changed.
- 💡Set up automatic contributions to ensure you maximize the annual limit without thinking about it.
- 💡Keep receipts for all qualified disability expenses in case of IRS audit.
- 💡Check if your home state offers a tax deduction for ABLE contributions—it may make your state's program worthwhile.
- 💡If you have a Special Needs Trust, ask the trustee to contribute to your ABLE for easier day-to-day access.
- 💡Use the ABLE debit card for everyday expenses rather than keeping cash that counts against SSI limits.
- 💡Review your investment allocation annually—consider more conservative options as your balance grows.
- 💡Remember: Medicaid is NEVER affected by ABLE balance, even above $100,000—only SSI is suspended.
- 💡Apply for the Saver's Credit when filing taxes if your income qualifies—it's now permanent for ABLE contributions.
Frequently Asked Questions
Starting January 1, 2026, you must have a significant disability with onset before age 46 (expanded from age 26). This includes those receiving SSI or SSDI based on disability, or those who can self-certify that they meet Social Security disability criteria. An estimated 6.1 million more Americans became eligible under the new age rule. You can also qualify if you have a condition on SSA's Compassionate Allowances list or have a physician's diagnosis confirming you meet SSA disability standards. Only one ABLE account per person is allowed nationwide.
