In short
An Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account for a person whose disability began before age 26. Earnings are tax-free when used for qualified disability expenses.
Key takeaways
- Annual contributions from all sources are generally limited to the gift tax annual exclusion.
- From 2026, the age of onset limit rises to 46.
- Up to $100,000 in the account is ignored for Supplemental Security Income eligibility.
Where it's tested
TCP: Personal Financial Planning — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An employee receives disability benefits under a policy for which the employer paid all premiums and excluded them from the employee's taxable wages. How are the benefits taxed?