ABLE Account Tax Rules
Money in an ABLE account grows tax-free, and withdrawals for qualified disability expenses are also tax-free. Some states give a tax deduction for contributions.
Also known as
Related terms
- ABLE Account
A tax-advantaged savings account for individuals with disabilities that allows them to save and invest money without losing eligibility for SSI, Medicaid, or other means-tested benefits.
- SSI
A federal needs-based program administered by the SSA that provides monthly cash payments to adults and children with disabilities or blindness, and to adults 65+, who have limited income and resources.
Take the next step
Frequently asked questions about ABLE Account Tax Rules
What is ABLE account tax rules?+
ABLE savings grow tax-free and qualified withdrawals are tax-free.
Who qualifies for ABLE account tax rules?+
People whose disability began before age 26 (rising to 46 in 2026).
How do I apply for ABLE account tax rules?+
Open an ABLE account in your state and track qualified expenses.
Where can I get help?+
Call BenefitKarma at (866) 201-2604 or use our free benefit screener.