The Achieving a Better Life Experience Act (“ABLE” Act) is a federal law enacted in 2014 that allows individuals with disabilities to save money that will not be counted by public means-tested benefit programs, such as Supplemental Security Income (“SSI”), Medicaid, and Supplemental Nutrition Assistance Program (“SNAP”).
These public means-tested benefit programs provide income subsidy, health care coverage, and food stamps, which are frequently needed by individuals with disabilities.
What Changed Under the ABLE Act
The ABLE Act was originally available only to people who had a qualifying disability before age 22. As of January 2026, individuals who developed a qualifying disability before age 46 are eligible to open an ABLE account through the Missouri ABLE program (“MO ABLE”).
Who Can Open an MO ABLE Account
A MO ABLE account can be opened by the individual with a disability or their authorized legal representative (“ALR”), such as a parent, another person chosen by the individual, an attorney in fact under a durable power of attorney, conservator, guardian or Social Security representative payee. Up to $20,000 per year can be invested in a MO ABLE account, and if an individual with a disability is working, an additional $15,650 can be invested in the account. So long as the total account balance remains below $100,000, a person’s benefits will not be affected.
Qualified Expenses You Can Pay With MO ABLE Funds
Funds in the account are intended to be used for “qualified expenses”—living expenses, housing, education, transportation, legal fees, health and wellness costs, assistive technology, and similar expenses. A 10% penalty is imposed when funds are used for non-qualified expenses, and public benefits could be jeopardized depending on the expense paid. One of the primary benefits of these accounts is that housing costs can be paid with account funds without jeopardizing SSI eligibility.
Medicaid Payback Requirements After Death
When a person receives Medicaid benefits, the state Medicaid agency (MO HealthNet in Missouri) is required to be repaid from any account funds remaining after the person’s death up to the amount of benefits Medicaid paid on that person’s behalf during their lifetime.
Funds can be deposited into the account by family and friends, so long as the annual limit is not exceeded. The account beneficiary can access the funds at any time through a bank account connected to the ABLE account or with a prepaid MO ABLE Visa card that can pay and track expenses directly.
There are minimal fees charged to open and maintain an ABLE account, and funds can be invested.
Pairing MO ABLE Accounts With Special Needs Trusts
ABLE accounts can be used in conjunction with special and supplemental needs trusts to allow funds to be preserved and used to enhance the life of an individual with a disability while simultaneously enabling them to qualify for public benefits.
To find out more about ABLE accounts and the ways to preserve and protect assets for an individual with a disability, call the attorneys at Paule, Camazine & Blumenthal, P.C.
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