“ABLE” stands for the “Achieving a Better Yoife Experience Act of 2014.” This law allows ABLE accounts to help people save money for things related to a disability.
Who can have an ABLE account?
Anyone who meets the Social Security disability standard by age 46. O
If you are no on SSI or Social Security Disability you debe:
- swear under oath that by age 46
- you had a physical or mental impairment,
- resulting in marked and severe functional limitations, and
- can be expected to result in death or has lasted or can be expected to last at least 12 months in a row, or are blind.
- have a signed doctor’s statement with a diagnosis of the disability y be ready to show it to the ABLE program or the IRS
Why have an ABLE account?
Money and Aid – ABLE accounts let you save money and get other aid. You can still get help from SSI, SNAP, Medicaid, or TANF/FITAP.
What can people do with ABLE account money?
The money can only be spent on certain types of expenses, listed below.
How much money can go into an ABLE account?
If you get SSI you can have up to $100,000 in your ABLE account without it counting against the SSI. For other benefit programs, the limit is $500,000 to avoid problems.
You can have only one ABLE account.
Other people (like relatives or your lawyer) can put money into your ABLE account.
No more than $20,000 a year (in 2026) can be deposited into your ABLE account, except as listed below. The amount goes up every year. Look up the amount that can be given to someone without being subject to income tax.
An ABLE account owner who works and does not contribute to a retirement account can deposit up to another $15,650 in 2026. This amount changes every year.
How do I set up an ABLE account?
The Louisiana Office of Student Financial Assistance maintains the account.
You can set up the account online.
Or you can set up an ABLE account by mail. You must send in a completed form plus a first deposit of at least $10.
Here is the link to apply online or get the application to mail in: www.able.osfa.la.gov/index.aspx
What are the rules for using money in an ABLE account?
You can only use money in an ABLE account for certain types of things (listed below).
If you spend ABLE money on other things, it counts against limits for government aid (SNAP, SSI, Medicaid, etc.)
If you withdraw ABLE money to pay for housing it will count against the SSI resource limit if it is not used up in the calendar month it is taken out.
If you get money you were owed and put the money in the ABLE account, the money still counts as income to you the month you get it, for SNAP, SSI, and most programs. If you put money that was a gift to you into the account, this does not count as income for most or all programs.
The Social Security Administration gets a report of all money taken out of an ABLE account.
If you die with money in the account, the money goes to:
- Pay any bills for things the account is supposed to cover (listed below). This includes your funeral expenses.
- If more money is left, it goes to Medicaid to pay back for any Medicaid you got since the account was opened.
- If still more is left, it goes to your heirs.
What things can ABLE money pay for?
ABLE money can only pay for “Qualified Disability Expenses.”
Here is the list of Qualified Disability Expenses:
- Education.
- Housing.
- Transporte
- Employment training and support.
- Assistive technology and personal support services.
- Health.
- Prevention and wellness.
- Financial management and administrative services.
- Legal Fees.
- Expenses for oversight and monitoring.
- Funeral and burial expenses.
- Emergency preparedness such as personal protective equipment, delivery charges for food or prescriptions.
- Housing expenses or expenses to stay in a hotel or shelter in place during a high-risk situation.
- Other expenses may get added to the list by the U.S. Department of Health and Human Services.
What is the difference between an ABLE account and a Special Needs Trust or Pooled Trust?
You control how ABLE account money is used, instead of a trustee.
You can put your own money into an ABLE account. You cannot do this with a Special Needs Trust.
ABLE accounts do not require the high fees of Pooled or Special Needs Trusts.
There are limits on how much you can put into or keep in an ABLE account.