Breaking Barriers: How ABLE Accounts Empower Financial Independence for People with Disabilities

A Path to Financial Freedom: Paul Safarik’s Journey

For 32-year-old Paul Safarik of Lincoln, Nebraska, life has been a journey of resilience and determination. Living with Down syndrome, Paul has worked tirelessly in the food industry since he was 21, delivering for restaurants like Raising Cane’s and stocking shelves at Trader Joe’s. His hard-earned money has enabled him to purchase a treadmill for staying active during bad weather and even contribute to the cost of braces for his teeth. What makes Paul’s financial progress remarkable is his use of an ABLE account, a tool that has revolutionized the way people with disabilities save money without risking their government benefits.

What Are ABLE Accounts and How Do They Work?

ABLE accounts, named after the Achieving a Better Life Experience Act of 2014, are savings accounts designed for individuals with disabilities. These accounts allow people to save money beyond the traditional $2,000 asset limit tied to benefits like Supplemental Security Income (SSI) and Medicaid. Without an ABLE account, individuals with disabilities risk losing crucial government assistance if their savings exceed this limit. Since their introduction in 2016, ABLE accounts have become a lifeline for millions, enabling them to save for education, medical expenses, job training, and even homeownership without jeopardizing their benefits.

Expanding Access to Financial Independence

The eligibility for ABLE accounts is currently limited to individuals who were diagnosed with a disability before the age of 26. However, this is set to change in 2026, when the age limit will increase to 46, extending access to an additional 6 million people, including 1 million veterans. This expansion is a significant step forward in ensuring that more individuals with disabilities can benefit from the financial freedom that ABLE accounts provide. According to Indiana State Treasurer Daniel Elliott, ABLE accounts have already made a profound impact, with average account balances ranging between $11,000 and $12,000, far surpassing the restrictive $2,000 limit.

A Flexible and Secure Way to Save

ABLE accounts are administered by state treasurers and can be easily set up online through state-run websites. Contributions to these accounts can be made by anyone, including the account owner, family members, friends, organizations, and employers, with a contribution limit of $19,000 per year in 2025. For working account owners who do not already contribute to a workplace retirement plan, an additional contribution of up to $15,560 to $18,810 is allowed, depending on the state. What’s more, investment earnings from ABLE accounts remain untaxed as long as the funds are used for qualified disability expenses, such as medical treatment, education, and job training.

Overcoming the Awareness Gap

Despite the life-changing potential of ABLE accounts, many eligible individuals remain unaware of their existence. According to data from the National Association of State Treasurers (NAST), only 186,641 ABLE accounts were in use at the end of 2024, despite an estimated 8 million qualifying individuals. This stark gap in awareness is a major challenge for advocates. As Treasurer Elliott notes, many people still believe that saving money could endanger their benefits, a misconception that ABLE accounts are designed to overcome. Efforts to educate the public and raise awareness are critical to ensuring that more individuals can benefit from these accounts.

Taking the Next Steps: Empowering Financial Health

For those who may qualify for an ABLE account, either now or in the future, it’s essential to take proactive steps. Online resources like ABLE Today and the ABLE National Resource Center provide tools to determine eligibility and guide individuals through the process of setting up an account. Starting in 2026, when the age limit rises to 46, even more people will have the opportunity to secure their financial future. By educating themselves and their loved ones, individuals can embrace the freedom and flexibility that ABLE accounts offer, paving the way for a more financially secure and independent life.