GoKawiilKey Takeaways Employment among Americans with disabilities has been rising, but many are unaware of ABLE accounts, a tax-advantaged way to save without losing key benefits.
ABLE accounts allow eligible people with disabilities to save up to $100,000 without jeopardizing eligibility for needs-based programs like Medicaid or Supplemental Security Income.
A 2022 law expanded ABLE eligibility so that, as of 2026, people whose disability began at age 46 or younger can qualify, increasing the potential eligible population to about 14 million people.
The U.S. workforce is experiencing a shift: Employment among people with disabilities has been steadily climbing in recent years.
According to a recent CNBC report, even as Americans gain jobs and financial independence, millions are missing out on a powerful, little-known tool that could significantly boost their savings: Achieving a Better Life Experience (ABLE) accounts.
ABLE accounts are tax-advantaged savings tools that can be set up by a person with a disability, or someone authorized to act on their behalf, such as a parent, legal guardian or power of attorney. These accounts allow both children and adults with disabilities to set aside up to $100,000 without putting their eligibility for critical benefits like Medicaid or Supplemental Security Income at risk.
ABLE account withdrawals are tax-free as long as account holders spend the funds on eligible disability-related costs. According to the IRS, these expenses can include essentials such as housing, education, transportation and assistive technology.
Voya Financial published research earlier this year showing that only 2% of U.S. workers understand what an ABLE account is.
“[It] is such an important vehicle to be able to provide savings without jeopardizing government benefits,” Voya Financial CEO Heather Lavallee told CNBC.
Meanwhile, more people with disabilities are in the workforce than ever before. According to the U.S. Department of Labor’s Office of Disability Employment Policy, the employment rate for working-age people with disabilities rose from 31% in early 2020 to 38% by mid 2024, reaching some of the highest levels on record.
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