How to Open a Disability Savings Account (ABLE or RDSP)

What a disability savings account does

A disability savings account lets you save money without losing benefits you depend on. The two main types are the ABLE account (in the United States) and the RDSP — Registered Disability Savings Plan (in Canada). Both work the same way: you put money in, it grows tax-free, and the government doesn't count it against your disability benefits the way it would count a regular savings account.

This matters because many disability benefit programs have strict rules about how much money you can have. If your savings go over the limit, you lose your benefits. A disability savings account is specifically designed to sit outside those limits, so you can build emergency funds or save for goals without that penalty.

The catch is that not everyone can open one. You need to meet the program's definition of disability, and you need to be under a certain age when you open it. The rules are different in each country and sometimes by state or province.

Key Takeaways

ABLE accounts are available to U.S. residents who became disabled before age 26 and meet the Social Security Administration's disability definition.
RDSPs are available to Canadian residents under age 60 with a Disability Tax Credit Certificate from the Canada Revenue Agency.
You can open either account at a bank, credit union, or investment firm — not just one place — and you can move money between them later.
Both accounts let you save without losing means-tested benefits like SSI or provincial disability supports, though the rules about how much you can hold vary.
Someone else can open and manage the account on your behalf if you cannot manage your own finances, through a power of attorney or guardianship.

ABLE accounts: who can open one and how

An ABLE account is a U.S. savings account for people with disabilities. To open one, you must have become disabled before your 26th birthday and meet the Social Security Administration's definition of disability — the same one used for Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI).

You do not need to be receiving SSDI or SSI to open an ABLE account. You just need to meet the definition. If you are unsure whether you meet it, the Social Security Administration publishes the exact criteria on its website, or you can call 1-800-772-1213 to ask.

To open an ABLE account, you pick a financial institution that offers them — many banks and credit unions do, as do investment firms like Fidelity and Vanguard. You will need your Social Security number, proof of identity (a driver's license or passport), and proof of your disability status. For proof of disability, you can use an SSDI or SSI award letter, a letter from the Veterans Administration, or a Ticket to Work document. Some institutions accept other forms of proof; ask before you visit.

You can open the account in your own name, or someone else can open it and manage it for you if you have a power of attorney or court-appointed guardianship. The account holder — the person whose name is on it — is the one who owns the money, even if someone else manages it.

RDSPs: who can open one and how

An RDSP is a Canadian registered savings account for people with disabilities. To open one, you must be under age 60 and have a Disability Tax Credit Certificate from the Canada Revenue Agency. This is a form that confirms you meet Canada's disability definition.

If you do not have a Disability Tax Credit Certificate yet, you can explore for one through your doctor or nurse practitioner. They fill out a form called the T2201, which goes to the Canada Revenue Agency. The process usually takes a few weeks to a few months. You do not need to have the certificate before you start the process — many financial institutions will hold your process while you get it — but you cannot open the account without it.

To open an RDSP, you pick a bank, credit union, or investment firm that offers them. You will need your Social Insurance Number, proof of identity, and your Disability Tax Credit Certificate number (or a copy of the certificate itself). The account can be opened in your name, or a family member or legal representative can open it and manage it for you.

Unlike ABLE accounts, RDSPs come with government grants and bonds. The Canada Disability Savings Grant matches money you put in — the government adds 20 to 40 cents for every dollar you contribute, depending on your income. The Canada Disability Savings Bond adds money even if you do not contribute yourself. These grants and bonds are information programs, but they only happen if the account is open. The sooner you open one, the sooner you can start receiving them.

What you can hold in a disability savings account

Both ABLE and RDSP accounts can hold cash, stocks, bonds, mutual funds, and other investments. You are not limited to keeping the money sitting in a regular savings account earning almost nothing. You can invest it the same way you would invest money in any other registered account.

This matters because if you are saving for something years away — a car, a house down payment, education — you have time for your money to grow. A financial advisor or your bank can help you pick investments that match how long you plan to save and how much risk you are comfortable with.

There are annual contribution limits. For ABLE accounts, you can put in up to $17,000 per year (this amount changes each year with inflation). For RDSPs, there is no annual limit on how much you can contribute, but the government grants max out after you have contributed a certain amount over your lifetime.

How disability savings accounts affect your benefits

The main reason to open a disability savings account is that the money in it does not count against benefit limits the way a regular savings account does. If you receive SSI in the U.S., having $2,000 in a regular savings account means you lose your benefits. Having $2,000 in an ABLE account does not affect your SSI at all — up to a point.

ABLE accounts have a limit: if the account grows to more than $100,000, you lose SSI benefits that month. Once you spend it back down below $100,000, your benefits restart. This is a high threshold — most people will not hit it — but it exists. Other benefits like Medicaid, housing information, and food information have different rules; some ignore ABLE accounts entirely, and some count them. You should check with the specific programs you use.

RDSPs work differently. The money in an RDSP does not count against income or asset limits for most provincial disability supports, but it can affect federal benefits like the Registered Disability Savings Plan itself — the grants stop if your income is too high. Again, the rules vary by program. Before you open an RDSP, call the programs you depend on and ask how they treat RDSP money.

Who can manage the account if you cannot

You do not have to manage the account yourself. If you have difficulty making financial decisions, someone else can open it and manage it for you. This person is called a subscriber (in Canada) or the account holder (in the U.S.), and they have the legal right to make decisions about the money.

The person managing the account can be a family member, a friend, or a professional like a financial advisor or social worker. They need legal authority to do so. This usually comes through a power of attorney (a document you sign giving them permission) or a court order (guardianship or conservatorship). The rules are different in each state and province, so ask your bank or a lawyer what form of authority they need.

The person managing the account must act in your best interest. They cannot use the money for themselves. If there is ever a dispute about how the money is being used, the account holder (you, or your legal representative) can take action.

Opening the account: the actual steps

First, decide which type of account you need. If you are in the U.S. and became disabled before age 26, look into ABLE accounts. If you are in Canada and under age 60, look into RDSPs. Some people are may be able to access for both if they live in a border area or have moved between countries.

Next, gather your documents. For an ABLE account: your Social Security number, a photo ID, and proof of disability (an SSDI or SSI award letter works best). For an RDSP: your Social Insurance Number, a photo ID, and your Disability Tax Credit Certificate number or a copy of the certificate.

Then, find a financial institution. Search online for "ABLE account providers" or "RDSP providers" in your area. Call or visit a few to compare fees — some charge monthly maintenance fees, some charge per transaction, and some charge nothing. Ask whether they offer investment options or just savings accounts. Write down which one you want to use.

Finally, open the account. You can do this in person at a branch, over the phone, or online, depending on the institution. The process usually takes 15 to 30 minutes. You will sign documents confirming you meet the disability definition and agreeing to the account rules. The institution will verify your information and set up the account. You should receive a confirmation and account number within a few business days.

Frequently Asked Questions

Can I have both an ABLE account and an RDSP?

If you live in the U.S., you can only have one ABLE account, but you can have other savings accounts too. If you live in Canada, you can only have one RDSP. If you have moved between countries or live near the border, ask a financial advisor whether you can hold both — the rules are complex and depend on your residency status.

What happens to the money if I die?

The money in the account becomes part of your estate and goes to whoever you name in your will or to your next of kin if you do not have a will. The account itself closes, but the money does not disappear. You can name a beneficiary on the account itself, which means the money passes to them without going through your will — ask your bank how to do this.

Can I withdraw money whenever I want?

Yes. Both ABLE and RDSP accounts let you withdraw money anytime without penalty. There is no lock-in period. However, if you withdraw money from an RDSP, you may have to pay back some of the government grants and bonds you received — the rules depend on how long the money was in the account and how much you withdraw. Ask your bank about this before you open the account.

Do I have to use the account for a specific purpose?

No. You can use the money for anything — living expenses, medical costs, education, a car, a house, or just emergency savings. There are no restrictions on what you spend it on. The only rule is that the money has to belong to the person with the disability.

What if I become ineligible — for example, I turn 26 and opened an ABLE account at 25?

You can keep the account and the money in it. You just cannot add new money to it. For ABLE accounts, once you turn 26, you can no longer contribute, but the account stays open and the money keeps growing tax-free. For RDSPs, once you turn 60, you can no longer contribute, but again, the account stays open.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.