ABLE Accounts

ABLE stands for Achieving a Better Life Experience. This is a tax-free savings account that allows eligible individuals with disabilities to save without jeopardizing their access to means-tested public benefits and to use those funds for qualified disability expenses.

Let’s take a closer look at each part:

1. Tax-free savings account: Any income earned grows tax-free, similar to a 529 college savings account. Withdrawals are not taxable if the beneficiary uses them for qualified disability expenses (defined below).
2. Eligible individuals with disabilities: To be eligible to open an ABLE account, the individual must have a disability with onset prior to age 46. “Disability” is established if the individual began receiving SSI or SSDI benefits before age 46, or if a doctor certifies that the individual met the Social Security definition of disabled at that time.
3. Save: Total annual contributions to an ABLE account (from all sources) may not exceed $20,000 (in 2026).
4. Means-tested public benefits: For SSI, Social Security does not count the first $100,000 in an ABLE account as a resource. For MaineCare, DHHS excludes the entire ABLE account balance up to $545,000.
5. Qualified disability expenses: Withdrawals may be used for food, education, housing, transportation, employment training and support, assistive technology and personal support services, healthcare expenses, financial planning and administrative services, legal fees, funeral and burial expenses, and more.

Most states have their own ABLE account program, and an eligible individual may open the account with any state program that accepts out-of-state residents. However, each individual may only have one ABLE account. Bangor Savings Bank administers the ABLE account program in Maine called “ABLE ME.”

Our special needs planning attorneys regularly incorporate ABLE accounts into plans that help individuals qualify for or preserve their benefits after receiving an inheritance, settlement, proceeds from a property sale, or other unexpected funds. If you would like to discuss whether an ABLE account may be helpful for you or someone you care for, we encourage you to reach out.