Opening an ABLE Account

Money in one of these state-sponsored accounts can be used tax-free to cover expenses for a disabled person. Here’s what it takes to qualify and the documents you need.

A mom and her daughter, who has Down Syndrome.
(Image credit: David Walters Photography)

Question: Is there an age limit for opening an ABLE account for a person with a disability? What documentation do you need to provide to show that the person is eligible?

Answer: People of any age who developed a qualifying disability before age 26 can open an ABLE account and contribute up to $16,000 per year (as of 2022). The money can be used tax-free for any expenses that benefit the person with the disability, and up to $100,000 in the account doesn’t count toward the $2,000 asset limit for Supplemental Security Income benefits.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.