ABLE Account Resources - Wakcha Group

Do I Qualify for an ABLE Account?

Answer 3 simple questions to find out if you're eligible

Step 1: Age of Disability Onset

My disability began before age 26 My disability began at age 26 or later I'm not sure

What Can You Use ABLE Funds For?

Qualified Disability Expenses (QDEs) cover a wide range of needs. Click each category to see real examples.

📚 Education

Tuition, books, tutoring, special education

🏠 Housing

Rent, utilities, home modifications, repairs

🚗 Transportation

Medical transport, accessible vehicles, transit

💊 Health & Wellness

Medical care, therapy, prescriptions, equipment

🖥️ Assistive Technology

Communication devices, mobility aids, software

💼 Employment Support

Job coaching, training, work equipment

🤝 Personal Support

Attendant care, home health, meal services

⚖️ Legal & Financial

Disability legal fees, tax prep, advocacy

Important: Entertainment subscriptions (Netflix, Spotify), general groceries, and non-disability-related expenses are typically NOT qualified expenses. When in doubt, consult with a tax professional.

How ABLE Protects Your Benefits

See the difference between saving in a regular bank account vs. an ABLE account

ABLE vs. Regular Savings Simulator

How much do you want to save? $5,000

❌ Regular Bank Account

$5,000 saved

If over $2,000: May lose SSI eligibility
Medicaid coverage at risk
Benefits reduced or terminated
Years to restore benefits

✓ ABLE Account

$5,000 saved

SSI continues unchanged
Medicaid fully protected
Up to $100,000 exempt from SSI resource limit
Tax-free growth on investments

Key Protection: ABLE account funds up to $100,000 don't count toward the SSI resource limit of $2,000. This means you can build real savings without jeopardizing critical benefits.

ABLE Spending Tracker

Track your expenses and see what qualifies as a QDE. Stay organized and audit-ready.

Add an Expense

Description

Amount

Your Expenses

No expenses tracked yet. Add your first expense above.

ABLE Tax Advantages

See how ABLE accounts grow your savings tax-free

The Power of Tax-Free Growth

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→

📈

→

✅

$10 saved → $10 grows tax-free → $10 + growth spendable for qualified expenses

Comparison: ABLE vs. Other Savings

Regular Savings Account

Interest is taxable
Jeopardizes benefits if over $2,000
No tax deduction
Limited growth potential

Special Needs Trust

Complex to establish
Legal fees required
Limited beneficiary control
Investment income taxed at trust rates

                        ABLE Account
                        Tax-free growth
Tax-free withdrawals for QDEs
Possible state tax deduction
You control the account

                    

State Tax Benefits: Many states offer tax deductions for ABLE contributions. Check your state's program for specific benefits. Some states allow deductions up to $5,000 or more per year.

Saver's Credit: If you work and have low-to-moderate income, you may qualify for the federal Saver's Credit for ABLE contributions—up to $1,000 in tax credits ($2,000 for couples).

Planning Ahead: What Happens to Your ABLE Account

Understanding the future helps you make better decisions today

Upon Death: The Medicaid Payback Rule

What you need to know:

When an ABLE account beneficiary passes away, the state Medicaid program may file a claim for repayment of benefits provided after the ABLE account was established. This is called the "Medicaid payback rule."

How It Works:

First: Any remaining funds go to pay outstanding qualified expenses
Second: State Medicaid can claim repayment for benefits paid after ABLE account opened
Third: Any remaining balance goes to named beneficiaries or estate

Smart Planning Strategies

💡 Spend Strategically

Use ABLE funds for qualified expenses throughout your lifetime to maximize the benefit

👥 Name Beneficiaries

Designate successor beneficiaries who also have ABLE accounts when possible

📊 Balance Your Savings

Consider ABLE alongside other planning tools like special needs trusts for comprehensive planning

📝 Review Regularly

Update your planning as laws change and your life circumstances evolve

Important: The Medicaid payback rule shouldn't discourage you from opening an ABLE account. The benefits during your lifetime—maintaining SSI eligibility, protecting Medicaid, and tax-free growth—far outweigh the payback provision for most people.

Download Resources

Quick-reference guides to help you navigate ABLE accounts

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ABLE & Medicaid at a Glance

Quick reference for benefit protection

PDF Guide

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HUD Rules for ABLE Savings

Housing assistance & ABLE accounts