Search for answers or browse our resource library.
ABLE Accounts
Reviewed May 2025
An Achieve a Better Life Experience (ABLE) account is a savings and investment option for people with disabilities who qualify. It falls under Section 529A of the Internal Revenue Service tax code. The ABLE Act allows a person whose disability began before age 26 to save money in an ABLE account without affecting most federally funded benefits based on need. In Wisconsin, this could include staying qualified for Medicaid, Medicaid waiver programs and Supplemental Security Income (SSI).
The money in an ABLE account may be used to pay for qualified disability expenses (QDEs). Any growth in the account from investments is not taxed and does not count as income if the funds are used for QDEs.
Important ABLE Rules
- The account beneficiary (the family member with a disability) can be any age when the account is set up.
- Only one account is allowed per person.
- A limit of $19,000* per year, if unemployed, or up to $27,060* if the person with a disability is employed and depositing their own income, can be added to an ABLE account.
- There are total lifetime limits in an ABLE account, depending on which state the account is held in, from $300,000 – $500,000
*These amounts are adjusted annually.
Can I Open an ABLE Account at a Local Bank?
No, ABLE accounts can only be opened by working with a state-sponsored ABLE program. Wisconsin does not currently have a state-sponsored ABLE program. Provisions under the federal ABLE Act allow Wisconsin citizens to open an account in another state if that state allows for out-of-state residents.
To learn about other state-sponsored ABLE Programs, see ABLE National Resource Center at ablenrc.org.
Legislation to create a Wisconsin-sponsored ABLE Program was signed into law in April 2024. It directs the Department of Financial Institutions to implement an ABLE savings account program either independently or through an agreement with another state or states.
What Can the Funds in an ABLE Account be Used For?
Funds from ABLE Accounts need to be used for QDEs. Disability expenses may include the costs for education, housing, transportation, employment training and support, assistive technology, personal support services, healthcare expenses, financial management and administrative services, and other expenses which help improve health, independence, and/or quality of life. Under current IRS rules receipts or proof of what these funds are used for are not required.
How to Compare ABLE Account Programs
- The ABLE National Resource Center created the following list of questions and a tool to help families compare ABLE programs.
- Does this program offer enrollment to out-of-state residents?
- Who is the program administrator?
- Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
- Is there an annual set fee to maintain the account? If so, how much?
- Is there a required minimum contribution to your account? If so, what is the amount?
- Are there fees or restrictions to the number of disbursements you are allowed? If so, what are they?
- Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
- Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
- Who is the investment manager?
- How many investment options are associated with the program?
- Do those investment options vary in risk?
- Is there a fee associated with the investment choices? If so, how much?
- Are there other characteristics unique to your program?
How Can I Learn More about ABLE Programs and Changes to the ABLE Act?
The ABLE National Resource Center at ablenrc.org provides background on the ABLE Act, updates on legislative changes, and resources on state programs. They can’t answer questions about individual programs so contact state programs directly with questions about opening an ABLE Account.
Information on ABLE accounts can also be found at the Wisconsin Department of Revenue website at revenue.wi.gov/Pages/faqs/ise-ABLEAccounts.aspx.
INFORMATION AND RESOURCES
877-WiscWay (877-947-2929): Wisconsin Wayfinder offers families one name and phone number to find services for children with special health care needs. Wayfinder connects you to a resource guide at one of the five Children’s Resource Centers in your area.
Family Voices of Wisconsin, 2025© | familyvoiceswi.org