Have you been forced to spend all your assets to maintain your benefits and keep under the $2,000 Medicaid asset test?
Good news for you! (And me.) Able tax advantaged accounts are now available for all US residents disabled before the age of 26. The funds placed in an Able account must be used for disability related issues. Essentially anything associated with cost of living as a disabled person. Your rent, mortgage, medical bills, even vacations as they enrich your life.
Able accounts can be contributed to by family and friends, and by you. Limits are set by your state. In Washington it is possible to contribute in excess of $15,000 through gifts and employment. Many states run their own Able fund, but you can compare and open them in a state other than where you reside if the funds have better rates or work better for you in your situation.
The SSI $2,000 asset test is unaffected up to $100,000 in balance. After that, each state has different rules. My understanding is that the assets may be counted against Medicaid after that point in the state of Washington.
This is also another option for parents with disabled children to stash funds for their child’s care other than a special needs trust.
This is an investment account. Please be aware you can lose money in this account.
I opened mine in about ten minutes. It’s pretty simple to get started. The minimum contribution to open the account is $25 and future minimum contributions are as little as $10. Once you have opened your account and set up automatic drafts to the account you then can choose from aggressive, moderate, or conservative funds to put your money into. I went with aggressive as I do not intend to touch this for at least a decade.
In Washington state there is an annual flat fee of $35 for the account plus a .30-.38% administrative fee. I do believe other investment accounts offer better rates, but this is the only accessible option that allows me to invest in my future without costing myself my present. That $35 annual fee is quite the kicker at such a low rate of investment as I am currently operating, but we work with what we got!
Learn about Able accounts and see if they can help you at the links below:
National Resource Center – ABLE
Washington State ABLE accounts
Tami’s Able account page
Disabled Girl On Fire 
I’ve been eyeballing ABLE accounts ever since they were announced. But I haven’t had much to invest cash to make the high fees worth it. I’m hoping next year will be the year for that. I do wonder if there will ever be a similar option for those who developed a disability later in life.
I’m glad to see a fellow chronic illness finance blogger. There aren’t too many of us out there.
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The fees ARE high, but since I have no other option for investments, it’s what I’m doing. They are working to extend the age range right now!
Agree!! I battled shame and other issues for a long time, and finally decided that people in my situation, needed representation. I’m glad to discover I’m not alone!
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[…] Able fund to $500. This will require an additional $300 contribution. […]
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[…] of $2k, set aside $2k for taxes, $1k for genetic testing, and I’ve contributed $10K to my ABLE fund – a special investment account for people with disabilities as we are often excluded from […]
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[…] my office remodel (post and photos to come!) And saved, saved, saved, as much as I could in my ABLE account. In July unemployment dropped to $235 a week pre tax – less than my normal working income. […]
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