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This Issue of our AchievABLE Newsletter - Summer 2025 Edition contains stories on the following:
Expanded ABLE Eligibility on the Horizon!
Greetings, readers! A big change is coming for ABLE accounts! Beginning January 1, 2026, the ABLE Age Adjustment Act will take effect, expanding ABLE account eligibility for people whose disability began before age 46. This expansion is expected to open the door for an estimated 6 million more individuals with disabilities, including over 1.2 million more Veterans, to be eligible to open an ABLE account to save and invest without affecting critical benefits. It is a powerful opportunity to build greater financial security now and in the future.
If you have not received a disability-related benefit from the Social Security Administration (SSA) since before age 46, now is the time to prepare. Ask your doctor to sign a statement confirming that your disability began before you turned 46. You may use this sample ABLE Account Disability Certification Form for this purpose. Regardless of the age of disability onset, an ABLE account may be opened at any age.
To learn more about choosing an ABLE plan and opening an account, visit How Do I Choose a Plan and How Do I Open An Account. There are 49 active ABLE plans nationwide. Many accept out-of-state residents. ABLE accounts are always opened in the name of the person who has the disability. An authorized representative can be identified for account owners who need help managing their ABLE account. ABLE account owners report that the enrollment process is simple and takes less than 15 minutes to complete.
Whether you are an advocate, service provider, financial professional, family member or someone with a disability, now is the time to get ready. Read and share the ABLE Age Adjustment Fact Sheet!
RECENT PUBLICATIONS & WEBINARS
ABLE Basics Video: Learn and Share. Whether you are looking to deepen your understanding of ABLE accounts or you would like to share information with your community, ABLE National Resource Center’s (ABLE NRC) ABLE Account Basics Video is an excellent resource for self-study and for use in presentations. This 20-minute video covers all the essential information about ABLE accounts, making it perfect for individuals new to the topic or for those who want a refresher.
Upcoming Events:
- Join us on Wednesday, June 11 from 2:00–3:00 pm ET for a step-by-step walkthrough of the individual ABLE account enrollment process. Register for the webinar!
- Join us on Wednesday, July 23, 2025, from 2:00–3:00 pm ET for a step-by-step walkthrough of the ABLE account enrollment process for disability service providers. Register for the webinar!
Webinars-on-Demand: All past recordings of ABLE NRC webinars are available at no cost 24/7 in our resource library.
In case you missed it or want to access it again, click the recording of WEBINAR: Empower Your Business with ABLE – ABLE National Resource Center to explore how ABLE accounts support business owners in 2025 and beyond.
ABLE BY the NUMBERS
As of 3/31/25, more than 204,000 ABLE accounts have been opened nationwide with $2.4 billion in assets under management. The average ABLE savings balance is just above $12,000. Thank you to Paul Curley and ISS Market Intelligence for this data.
Questions & Answers
- Question: I have a cousin with a disability who lives in a US Territory. Can they open an ABLE account?
Answer: Yes, the person may select an ABLE plan that allows out-of-state participation. They may want to call the ABLE plan to verify that they can participate and easily use ABLE funds in their territory before opening an ABLE account with that plan. The ABLE NRC comparison tools provide contact information and a direct link to each ABLE plan’s site to open and manage one ABLE account.
- Question: My family member opened an ABLE account and then passed away. How can the family get the funds they contributed to the ABLE account? If I/we do not have a disability, are there fees or taxation?
Answer: All ABLE account owners should prepare in advance by having a Last Will and Testament that includes the name of ABLE account heirs/beneficiaries. Some ABLE plans allow the account owner, while alive, to name an ABLE-eligible beneficiary. This is called a successor account owner, and action will take effect upon the death of the account owner. In this case, the funds transfer to the person’s ABLE account, tax-free.
When the ABLE account owner passes away, contact the ABLE plan to notify them and request any required forms. Obtain information on the procedure in their state, any state-specific rules and the sequence of distribution. The ABLE plan’s disclosure document is also a reliable resource to review.
Funds are generally distributed in the following order:
- Outstanding Qualified Disability Expenses (QDEs) – Any outstanding QDEs, including funeral and burial expenses, can be paid first from the ABLE account.
- Medicaid Payback – If the account owner received Medicaid, the state may file a claim for reimbursement of Medicaid benefits paid after the ABLE account was established. This is commonly referred to as the Medicaid Payback provision. Each ABLE plan’s policy is listed within the Plan Comparison Tools.
- Successor Account Owner – Some states allow a successor account owner (such as a sibling with a disability) to inherit the ABLE account. If this is allowed and applicable, the funds could be transferred before Medicaid payback.
- Heirs or Beneficiaries – After Medicaid payback (if applicable), any remaining funds are distributed according to the deceased account owner’s estate plan / Last Will and Testament or applicable inheritance laws if the account owner passes without a will. The attorney handling the estate can provide you with information regarding taxation and a timeline.
The payment of outstanding QDEs, Medicaid payback and a successor account owner could decrease any taxes due. We recommend consulting with an attorney who handles estates for guidance on taxes, state rules, distributions and timelines.
- Question: Do all ABLE plans allow for direct deposit of income tax refunds? I listed my ABLE account’s bank and routing number on my income tax Form 8888. Later, I received a check from the IRS for my income tax refund instead of it being direct deposited into my ABLE account.
Answer: Contact your ABLE plan directly and verify if it is possible to have your tax refund directly deposited into your ABLE account. If direct deposit is not possible, know that federal and state income tax refunds are not countable as income. If the refunds are saved in a non-ABLE account, the federal portion is a countable resource after 12 months and the state portion is a countable resource after 1 month. When you receive a needs-based benefit, rather than risk exceeding a resource limit, take steps to deposit all income tax refunds into the ABLE account. Up to $100,000 of ABLE funds are not counted as a resource by the SSI program and all ABLE savings, up to the plan’s limit, are not counted as a resource by FAFSA, HUD, SNAP, SSDI, Medicaid or Medicare.
Advancing ABLE
#ABLEtoSave 2025 was a success! Throughout April, ABLE NRC and partners provided information about the significance of ABLE accounts and how they can be used to address daily needs, help achieve long-term goals and increase financial well-being.
We appreciate your engagement with us on social media @theablenrc on Facebook, Instagram and LinkedIn. Several states including, but not limited to Iowa, Michigan, Ohio, Illinois, California, Vermont, Kansas, Maryland and Wisconsin joined in the campaign to spread awareness about the power of ABLE.
SSA’s “What is an ABLE Account?” This video summarizes how ABLE accounts support Supplement Security Income (SSI) recipients to save for their future while protecting their SSI benefits among other key advantages of ABLE. What is an ABLE account?
State Updates
Illinois (IL). Disability service agencies and organizations can open, manage and view Illinois ABLE accounts online for the individuals they serve using the accessible Online Entity Management Dashboard. Read more about entities and Who Can Open an IL ABLE Account!
Pennsylvania (PA). The Franklin County Free Press reports that the PA ABLE assets exceed $150 million. Additionally, 2025 marks the introduction of a new state tax credit in PA aimed at encouraging employers to match their employees’ contributions to PA ABLE accounts. Pennsylvania employers can now receive a 25 percent tax credit for matching contributions, up to $500 per employee, annually. (Please note, employer ABLE contributions are compensation and may impact SSI benefits for the ABLE account owner.)
Mississippi (MS). SB2396 was approved by the Governor on March 12, 2025. Unless required by federal law, this legislation prohibits the state or any of its agencies from seeking repayment for Medicaid benefits from MS ABLE accounts. By amending various sections of the state code, this bill reinforces the protection of ABLE account assets from being used to reimburse Medicaid, thereby supporting the financial security of individuals with disabilities and their families. The law goes into effect on July 1, 2025. Mississippi joins at least 15 other states in limiting Medicaid claw back.
ABLE NRC viewers may use the ABLE NRC Comparison Tool: Search By Features to submit their search and view the CSV file for each ABLE plan’s Medicaid Payback statement posted under column Q. The Medicaid Payback policy applies for those who live in that state and select their state’s ABLE plan.
Idaho (ID). Idaho’s governor signed an ABLE House Bill (HB 26) into law that goes into effect on July 1, 2025. The law includes: 1) allowing the Idaho State Treasurer to enter into an agreement with a national consortium of ABLE accounts; and 2) creating an advisory council to guide the program’s policies and outreach efforts.