The newly enacted ABLE accounts permit people with disabilities to save money without jeopardizing their government benefits. Account holders can have up to $100,000 in these accounts without jeopardizing their SSI (Supplemental Security Income) benefits. Medicaid benefits do not get jeopardized regardless of the amount of money held in these accounts.

These accounts enable disabled individuals to hold money in their name without a need for a Supplemental Needs Trust. This can be very beneficial for people with limited assets.

However, these accounts have a few downsides which make them impractical for many: A maximum amount of $14,000 a year can be deposited into an individual’s account, from any source. Only people whose disabilities originated prior to age 26 are eligible for these accounts. Finally, after the account holder’s death, the money will be used to repay Medicaid for the cost of care provided to the individual.


Disclaimer: This article only offers general information.  Each situation is unique. It is always helpful to talk to a specialized attorney, to figure out your various options and ramifications of actions.  As every case has subtle differences, please do not use this article for legal advice. Only a signed engagement letter will create an attorney-client relationship.