I love to travel, go to events, enjoy time with my family – just live life to the fullest. And like so many of my disabled friends, I have expenses that my able-bodied friends don't have – adaptive equipment, repairs to that equipment, home modifications, and expenses related to adapting my car to name just a few. For some of my friends, it can be personal support services, a service animal, or extra therapies – expenses that are often not covered by insurance or benefits programs.
Put simply, life is more expensive with a disability. And that's one of the reasons I opened an ABLE account. Truly, I cannot think of a reason for any wheelchair user NOT to have an ABLE account. If you haven't heard of "Achieving a Better Life Experience," or ABLE accounts, read on!
What are ABLE accounts?
ABLE accounts are unique and can be owned only by eligible people with disabilities to save and invest money.
Similar to other savings vehicles like a 529 college savings account, an eligible person can save money in an ABLE account with tax-free earnings as long as the assets in the account are used for expenses that benefit the account owner. I use my account to pay my mortgage and buy products that make my life easier. Other account owners pay for groceries, a new car, or gym membership – you name it!
In 2016, when Illinois had just passed legislation to create an ABLE program in the state, I was serving as the first state legislator in Illinois who used a wheelchair, and I knew that this would be a gamechanger for so many disabled people.
But there was a limitation: ABLE accounts were only available to people whose disability began before their 26th birthday. This meant people like me, whose disability came later in life (I was 34 when I became disabled) couldn't have an ABLE account.
But that's changed, and now more people are able to own an ABLE account! Starting in January of this year, ABLE eligibility expanded to include people whose disabilities began before their 46th birthday. I did not wait to open my ABLE account.
Benefits of having an ABLE account
Tax advantages: one of the most important benefits of my ABLE account is being able to grow assets tax-free over time. Money in an ABLE account grows tax-deferred and is tax-free when it is used to pay for qualified expenses. I also opened my account for the very generous Illinois tax benefits. By opening my account with Illinois' ABLE program (IL ABLE) I was able to take a state tax deduction for contributions I make to my account; Illinois taxpayers who contribute to any IL ABLE account may be able to take a state income tax deduction – up to $10,000 if filing as an individual or $20,000 if filing jointly. ABLE programs in other states may also offer tax benefits to their state's residents, too.
Anyone can contribute to your ABLE account: you, your family, your friends. Looking to buy a cool new piece of equipment, but not sure how to pay for it? You could have a fundraiser where people can contribute directly to your ABLE account to help cover the cost. Contributions from all sources can total up to $20,000 in 2026.
You can roll funds from a 529 college savings account into your ABLE account. I was done with school; my kids were done with school – so I was able to roll money left over in my 529 accounts into my ABLE account. This enabled me to unlock those funds which were restricted for just educational purposes so that I can now use them for ABLE qualifying expenses – which can include education expenses and so much more. A qualified expense is any expense that helps to improve or maintain an account owner's health and wellness, quality of life, or independence. I recommend keeping receipts for the expenses that are paid for with ABLE funds – just in case you are ever audited by the IRS.
ABLE accounts are flexible. The account can stand alone and complement other financial vehicles such as a retirement account – but you don't have to wait to use the money. Money in an ABLE account can be used now or saved for later – you decide on when and how to use the money for a qualified expense.
Savings in an ABLE account doesn't impact eligibility for Social Security Disability Insurance (SSDI) and other federal benefits programs such as Medicaid. For individuals receiving Supplemental Security Income (SSI), the first $100,000 in an ABLE account is disregarded by the Social Security Administration.
Opening an ABLE account
I opened my account with the IL ABLE program and you can, too. Or, you can check with your home state to see if they offer ABLE accounts. Learn more about IL ABLE at illinoisable.com.
August 14 is National ABLE Savings Day. It's a perfect time to learn about the benefits of ABLE accounts and a great day to open an ABLE account and start saving.
About the Author
In 2007, Dan was in a hit-and-run accident that left him with a spinal cord injury and no use of his legs. Undeterred from his quest to make the world a better place, he was the first paraplegic to win a state-level office in Illinois when he ran for the Illinois Senate in 2016. There, he championed a myriad of issues, including expanded accessibility for the disabled. Dan is the founder and CEO of Accessibility Policy Institute, which is dedicated to improving accessibility for the disabled at every level by promoting federal, state, and local policies that remove barriers so every disabled person has the opportunity to live, work, and thrive.
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