ABLE Savings Accounts For People With Disabilities

You must have become blind or significantly disabled before age 26 (this will increase to before age 46 starting January 1, 2026).

You must meet the Social Security disability standard (SSI or SSDI) or have a doctor’s certification of your disability.

Individuals certify that they have a disability and are eligible to open an account. You do not, generally, have to send in medical records or diagnoses to open an ABLE account. Account owners must recertify their eligibility annually. 

You must expect the disability to last at least 12 months or result in death.

In Louisiana, you must be a resident of the state to open a Louisiana ABLE account.

In 2025, the contribution limit is $19,000. 

Employed individuals can also contribute earnings up to $15,560 in addition to the $19,000 annual contribution limit, as long as they do not have a retirement plan that they or their employer contributes to. 

The maximum balance allowed in Louisiana is $500,000, but once the account balance reaches $100,000, your SSI may be suspended (not canceled). Medicaid continues regardless of the balance. It is unclear whether other benefits, such as those provided by the State, would be affected if the account grows to more than $100,000. 

Funds can be used for qualified disability expenses, including:

• Education (tuition, training, vocational programs)

• Housing and rent

• Transportation

• Job training and employment supports

• Health, prevention, and wellness care

• Assistive technology (like communication devices)

• Personal support services

• Financial management and administrative costs

• Funeral and burial expenses

If you spend ABLE funds on non-qualified expenses, the money may count against SSI, Medicaid, or SNAP limits.

Note: Money that is withdrawn for housing expenses and is not used immediately may affect SSI benefits. It's important to withdraw funds for housing expenses as close to the date that payment is due as possible. 

There are no federal taxes on funds held in an ABLE account. 

There is no federal tax when funds from the account are used for qualified expenses such as those listed above. 

There is no federal tax deduction for someone who contributed to an ABLE account. 

For more information, see Publication 907, Tax Highlights for Persons with Disabilities.

The account first pays any unpaid qualified expenses, including funeral costs.

The remaining money is then used to pay back the state Medicaid agency for services provided since the account was opened. This is not to exceed the cost of care provided. 

Any leftover funds go to the person’s heirs or estate. This will be subject to income tax, but will not be subject to a penalty. 

Determining which option is the most appropriate will depend on individual circumstances. Here are some of the differences: 

• Control: The person with the disability controls how ABLE funds are spent. In a trust, the trustee decides.
• Contributions: You can put your own money into an ABLE account. With most trusts, only others can contribute.
• Cost: ABLE accounts have lower fees; trusts often require paying a trustee.
• Limits: ABLE accounts have yearly and lifetime limits; trusts do not.

No, each person is limited to one ABLE account. However, you can "rollover" your ABLE account to another state's program if you choose to. You can visit the ABLE National Resource Center at www.ablenrc.org to learn more about rolling over your ABLE account to another state's program. 

Louisiana’s ABLE program is run by the Louisiana Office of Student Financial Assistance.

You can apply online at www.able.osfa.la.gov.

If you live outside Louisiana, you may also open an account in another state’s program, depending on their rules. You can compare options at the ABLE National Resource Center: www.ablenrc.org.

Here are some trusted organizations that provide services and assistance for people with disabilities in Louisiana: 

• Disability Rights Louisiana (DRLA) 
• Governor's Office of Disability Affairs 
• LATAN - Louisiana Assistive Technology Access Network 
• Office for Citizens with Developmental Disabilities (OCDD) 
• Office of Aging and Adult Services 
• People First of Louisiana 
• Statewide Independent Living Council 
• The Arc of Louisiana