Personal Finance Banking Savings
Written by Sophia Acevedo; edited by Sarah Silbert
- ABLE account contribution limits
- Advantages of an ABLE account
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- You can deposit $18,000 in an ABLE account annually in 2024.
- You might be able to contribute more money to an ABLE account if you have a job.
- You may keep up to $100,000 in an ABLE account without it impacting your SSI eligibility.
The amount of money you can contribute to an ABLE account each year is the same as the annual exclusion amount for gift taxes.
For 2024, the Internal Revenue Service has made several inflationadjustments for tax provisions — including gift taxes — which means that the contribution limit for ABLE accounts has also increased. If you have an ABLE account, we'll cover how much money you can save in your account this upcoming year.
How much money can you deposit in an ABLE account in 2024?
People with disabilities and family members may deposit $18,000 in an ABLE account for 2024.
If the designated beneficiary of the account has a job and their employer isn't contributing to a retirement plan, they will also be able to contribute an additional amount equal to their annual gross salary or the individual federal poverty level — whichever is less.
The following table provides an overview of the federal poverty level for a one-person household in 2024, according to the IRS:
| Location | Poverty Line |
| Continental United States | $14,580 |
| Hawaii | $16,770 |
| Alaska | $18,210 |
What are the advantages of an ABLE account?
Alexandria Dunn, CFP® professional, CTFA, wealth advisor, and partner of Affinia Financial Group, says ABLE accounts serve as an important savings option for people with disabilities who still want to be eligible for government assistance. With an ABLE account, Dunn says people with disabilities can save for the future instead of focusing on trying to qualify for benefits.
"If you think about it, all of us may have some type of emergency expense that would come up that our monthly expenses would not cover. These individuals were never able to save for emergency savings, let alone a long-term goal, such as retirement," explains Dunn. "With an ABLE account, individuals that had a disability prior to the age of 26 can save more money that's accessible to them."
To be eligible for Supplemental Security Income (SSI), you must have $2,000 or less in cash resources. But you can have up to $100,000 in an ABLE account without impacting your eligibility to get SSI benefits.
Money in your account can earn tax-free interest and be used to pay for expenses related to housing, food, healthcare, transportation, or a down payment on a home.
ABLE accounts can't be opened at a bank or credit union. Instead, you'll need to open an account through one of the 49 ABLE state programs available. While a couple of programs are state-specific, some also allow anyone in the United States to open an account, regardless of where they live.
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She has spent three years as a personal finance journalist and is an expert across numerous banking topics.ExperienceSophia leads Personal Finance Insider's banking coverage, including reviews, guides, reference articles, and news. She edits and updates articles about banks, checking and savings accounts, CD rates, budgeting, and general saving. Sophia was also a part of Business Insider's 2024 series "My Financial Life," which focused on telling stories that could help people live and spend better.Before joining Business Insider, Sophia worked as a journalist at her college newspaper and was a freelance writer. She has spent seven years writing and editing as a journalist.Sophia was nominated for an Axel Springer Award for Change in 2023 for her coverage of ABLE accounts, tax-free savings accounts for people with disabilities. She was also a winner of a 2018 California Journalism Awards Campus Contest for her photography.She loves helping people find the best solutions for their unique needs and hopes that more people will find the tools to solve their financial problems. She’s inspired by stories of everyday people adapting to their financial circ*mstances and overcoming their fears around money.ExpertiseSophia's expertise includes:
- Bank accounts
- Savings and CD rate trends
- Budgeting
- Saving
- How banks operate
EducationSophia graduated from California State University Fullerton with a degree in journalism and a minor in political science.Sophia is a member of the National Association of Hispanic Journalists.She is an avid reader across a variety of genres, and she started running in 2021. She ran in the 2024 Los Angeles Marathon.
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