An ABLE account is a savings account for people with disabilities that keeps savings from counting against SSI and Medicaid, up to limits set in law. For a college student, it can hold money for tuition, books, a laptop, rent or rides to campus.
Who can open one
ABLE accounts follow an age-of-onset rule, meaning the disability must have begun before a set age. Starting in 2026, that age rose from before 26 to before 46, which opened accounts to many more people. The account holder also needs SSI or SSDI based on that disability, or a certification of the disability kept on file.
States run ABLE programs, and many accept people from other states, so you can compare fees and investment choices. A parent, guardian or authorized representative can open and manage the account for someone who wants help, and the account always belongs to the person with the disability.
Paying for school and daily life
Money taken out for the disability expenses the law allows keeps its tax benefits. That list is broad and includes education, housing, transportation, assistive technology, health care, job training and basic living costs.
For a student, that can mean tuition and books, a computer for coursework, a bus pass or car repairs, and rent. Keep receipts for every withdrawal, because the account holder may be asked to show what the money paid for.
Money in an ABLE account is ignored for SSI up to a balance set in law, and it does not count against Medicaid at all.
How ABLE savings meet SSI and Medicaid
SSI has a low resource limit, which makes saving hard. Money in an ABLE account is ignored for SSI up to a balance set in law, and it does not count against Medicaid at all. Above that balance, SSI payments can be suspended, though Medicaid generally continues.
Housing is the one category to watch. An ABLE withdrawal for rent that is spent in the same month causes no trouble for SSI, while money taken out for housing and left sitting into the next month can count as a resource. Pay housing costs promptly after a withdrawal.
Putting money in
Anyone can contribute, including you, family, friends or an employer. Total yearly contributions are capped at a figure tied to the federal gift tax exclusion, which changes over time. A working account holder without an employer retirement plan may add an extra amount from their own earnings.
Gifts from family meant for school can go straight into the account, where they stay outside the SSI resource count. Ask your state's program how deposits work and which records to keep.
Steps to take
- Check the age-of-onset rule for your disability
- Compare your state's ABLE program with others
- Keep receipts for every withdrawal
- Pay rent in the same month you withdraw for it
Who decides
Your state's ABLE program and the Social Security Administration
An ABLE account lets you save for school and daily costs while keeping SSI and Medicaid, as long as you track how each withdrawal is spent.