ABLE Accounts and Working People with Disabilities

April 2021

Many people with disabilities have opened an ABLE account or plan to do so. Some are working or are moving toward employment goals. If a working individual receives or seeks public benefits, including means-tested benefits such as Supplemental Security Income (SSI), Medicaid, a Medicare Savings Plan or assistance from a State Vocational Rehabilitation Agency, the person has the opportunity to maximize use of their ABLE account while maintaining or establishing eligibility for public benefits for a period of time.

This decision guide examines key issues facing an ABLE account owner as they seek to achieve maximum levels of independence through employment. We assume the ABLE account owner, or someone from the ABLE account owner’s Circle of Support, has opened an ABLE account (or expects to do so), and the ABLE account owner is working, or will soon start work, and faces one or more of the issues addressed below: 

• ABLE Accounts and Public Benefits for Working People
• SSI and ABLE Accounts for Account Owners Who Work
• SSDI and ABLE Accounts for the Working Person
• Medicaid and ABLE Accounts for the Working Person
• Means-Tested Medicare Support and ABLE Accounts for the Working Beneficiary
• Means-Tested Support from State Vocational Rehabilitation Agencies and ABLE Accounts for Beneficiaries Working or with Work Goals
• Using a Federal Tax Refund, Including the Earned Income Tax Credit and Saver’s Credit to Generate Potential ABLE Account Contributions
• Retirement Insurance Benefits (RIB) and ABLE Accounts for the Working Person
• Services Available Through a Work Incentives Counselor
• Self-Employment and ABLE: Information and resources can help people who have a disability start or grow their businesses. Many people who have a disability are self-employed as an independent contractor (receive a 1099 not a W-2) or have their own business. There are specific work supports for those who receive SSI and/or SSDI and are self-employed. Be certain to request benefits advisement to be sure that you understand the work supports you are eligible for and when you can use them along with what steps to take to start and grow your self-employment activities or business, that will help you reach your goals. National Disability Institute’s Small Business HUB has resources to help you start and grow your business:  https://www.disabilitysmallbusiness.org/