Does an ABLE account allow for an accumulation of contributions beyond $100K?

An ABLE account, established under the Achieving a Better Life Experience Act, is designed to provide individuals with disabilities the opportunity to save and accumulate funds without jeopardizing their eligibility for means-tested benefits. However, these accounts are subject to certain limitations concerning the accumulation of funds.

The accurate understanding is that there is indeed a hard limit on the amount that can be held in an ABLE account without affecting eligibility for programs like Supplemental Security Income (SSI). Specifically, while the account can accumulate contributions, once the balance exceeds $100,000, the individual may face a reduction in their SSI benefits. This limit is intended to ensure that the funds in the account are used for the intended purpose of improving the quality of life and supporting individuals with disabilities, without creating an unintentional barrier to access essential support.

Options that suggest different conditions, such as specific conditions for exceeding the $100K limit or suggesting that only certain tax implications apply based on age or family contributions, do not align with the regulations governing ABLE accounts. The hard limit of $100,000 is a foundational component of the ABLE account structure, designed to maintain a balance between enabling savings opportunities and preserving eligibility for critical governmental support.