You can open an ABLE account directly through your state's program or a financial institution that runs one

An ABLE account is a tax-advantaged savings account for people with disabilities who became disabled before age 26. You do not go through a government office to open one. Instead, you choose a state ABLE program or a financial institution that administers ABLE accounts, then complete an account process with them directly. The process takes about 15 to 30 minutes online or by mail, and you can start saving when ready after approval.

The key difference from other savings accounts is that ABLE accounts let you save up to $18,000 per year (as of 2024, though this amount can change) without affecting your Supplemental Security Income (SSI) or Medicaid benefits — something a regular savings account cannot do. You will need proof of your disability status and a Social Security number to open one.

Key Takeaways

  • ABLE accounts are opened directly with a state program or financial institution, not through a government benefits office.
  • You must have a disability that began before age 26 and have documentation of that disability to open an account.
  • Most states run their own ABLE programs, but some residents can use another state's program if their own state does not offer one.
  • The account process asks for your Social Security number, disability documentation, and basic financial information, and takes 15 to 30 minutes to complete.
  • Once opened, you can deposit money and begin saving without the account balance counting against SSI or Medicaid limits.

Finding your state's ABLE program or a participating financial institution

Start by checking whether your state runs an ABLE program. The National ABLE Network maintains a list of all active state programs on its website, organized by state. If your state has a program, you can open an account through that program's website or by contacting them directly.

If your state does not run an ABLE program, you have two options. Some states have passed legislation to allow residents to use another state's ABLE program — typically a neighboring state or one with a well-established program. Check the National ABLE Network list to see which states accept out-of-state residents. Alternatively, some financial institutions like Fidelity and Schwab offer ABLE accounts that are available to residents of multiple states, even if those states do not have their own programs.

Before you choose, compare the fees, investment options, and customer service reputation of programs you are considering. ABLE programs vary in annual maintenance fees (some charge nothing, others charge $25 to $50 per year), investment choices, and whether they offer phone or in-person support.

What documentation you will need to open an account

You will need to prove two things: your identity and your disability status. For identity, have your Social Security number and a government-issued photo ID ready (driver's license, passport, or state ID card). For disability, you will need documentation showing that you have a disability that began before age 26.

Acceptable disability documentation includes a Social Security Administration (SSA) letter stating you receive SSI or Social Security Disability Insurance (SSDI), a letter from the Department of Veterans Affairs if you receive disability benefits, or a diagnosis letter from a licensed physician or psychiatrist dated before your 26th birthday. Some programs also accept a letter from a state vocational rehabilitation agency confirming your disability.

If you do not have a current SSA letter, you can request one by logging into your my Social Security account online or by calling the SSA at 1-800-772-1213. The letter typically arrives within two weeks. Have this documentation ready before you start the process, because most programs will ask you to upload it or provide it during the account opening process.

The account process process, step by step

Most ABLE programs let you start an process online. Go to your chosen program's website and look for a button labeled "Open an Account" or "get your free guide." You will be asked to enter your name, date of birth, Social Security number, and contact information. Some programs ask this information first; others ask for disability documentation first to verify your status before proceeding.

Next, you will upload or attach your disability documentation. This is usually a PDF or image file. If you are opening an account by mail instead of online, print the process form from the program's website, fill it out by hand, and mail it with copies of your documentation to the address listed on the form.

After you submit the process, the program will review your documentation. This review typically takes three to five business days. You will receive an email or letter confirming whether your account has been opened. Once approved, you can log in to your account online, set up a username and password, and link a bank account so you can transfer money in.

Linking a bank account and making your first deposit

After your account opens, you will need to connect it to a checking or savings account so you can move money in and out. Log into your ABLE account online and look for a link or button that says "Link Bank Account" or "Add Funding Source." You will enter your bank's routing number and your account number — both appear on the bottom left of a check, or you can find them by logging into your bank's website.

Some programs verify the link by making two small test deposits (usually under $1 each) to your bank account within one to two business days. You will then log back into your ABLE account and confirm the amounts of those deposits to prove you own the bank account. Other programs verify when ready using your bank login credentials.

Once your bank account is linked, you can transfer money into your ABLE account. Transfers usually take one to three business days. There is no minimum deposit required to open the account, but you will need to deposit money before you can use the account's investment features or begin saving toward your $18,000 annual limit.

What happens after your account is open

Once your ABLE account is active, you can choose how the money is invested. Most programs offer a range of investment options, from conservative savings accounts that earn interest to diversified portfolios of stocks and bonds. If you are unsure which option to choose, many programs offer a default investment based on your age — similar to a target-date fund in a 401(k).

You can deposit money into your ABLE account throughout the year, up to the annual contribution limit ($18,000 in 2024, though this may increase in future years). Money you deposit does not count against your SSI resource limit (which is $2,000 for an individual), so your benefits will not be reduced. However, any earnings your account generates above $100 per year may reduce your SSI payment by one-third of the earnings, so it is worth understanding this rule before you invest aggressively.

You can withdraw money from your ABLE account at any time without penalty. Withdrawals do not affect your SSI or Medicaid benefits. Keep records of what you spend the money on — ABLE accounts are designed for disability-related expenses like medical care, education, housing, and employment support, and the IRS may ask you to document how you used the funds.

If you already receive SSI or SSDI and want to open an ABLE account

You do not need to notify the Social Security Administration before opening an ABLE account. However, you should report the account to SSA within 30 days of opening it, because SSA needs to know it exists in order to exclude it from your resource limit. You can report it by calling your local SSA office or by logging into your my Social Security account and sending a message to SSA.

When you report the account, have your ABLE account number ready. SSA will add a note to your file so that the account balance does not count against your $2,000 resource limit. If you do not report it and SSA discovers the account during a review, they may temporarily suspend your benefits until you provide documentation that the account is an ABLE account.

Frequently Asked Questions

Can I open an ABLE account if I do not receive SSI or SSDI?

Yes. You do not need to be receiving benefits to open an ABLE account. You only need to have a disability that began before age 26 and documentation of that disability. The documentation can be a diagnosis letter from a doctor, a letter from a state vocational rehabilitation agency, or a letter from the VA if you receive disability benefits from them.

What if my state does not have an ABLE program and does not allow residents to use another state's program?

You can open an account through a financial institution that offers ABLE accounts to multiple states, such as Fidelity or Schwab. Check the National ABLE Network website to see which programs are available to your state's residents. If no programs are available, contact your state's disability advocacy organization — they may know of upcoming programs or alternative options.

How long does it take to open an ABLE account from start to finish?

The process itself takes 15 to 30 minutes to complete online. The program's review of your documentation typically takes three to five business days. Once approved, you can log in and link a bank account when ready, though the bank account verification may take one to two additional business days. Total time from process to your first deposit is usually one to two weeks.

Can someone else open an ABLE account on my behalf?

No. You must open the account yourself using your own Social Security number and identity verification. However, once the account is open, you can authorize another person (a parent, guardian, or trusted family member) to have access to the account as an authorized user or co-owner, depending on the program's rules. Check with your chosen program about their policies on authorized users.

What if I have a guardianship or conservatorship?

If you have a legal guardian or conservator, they may need to sign the process or provide documentation of their guardianship. Requirements vary by program and by state. Contact your chosen ABLE program directly to ask what documentation a guardian or conservator needs to provide, and whether they can open the account on your behalf or whether you must open it yourself.