Understanding ABLE Account Contribution Limits 2024

In 2024, ABLE account contribution limits are set to increase, allowing individuals with disabilities to save more for their future.

The total annual contribution limit for ABLE accounts is $15,000.

This amount can be contributed by anyone, including the account beneficiary, their family, and friends.

The catch-up contribution limit for account beneficiaries who are 59 1/2 or older is $6,000.

The annual contribution limit for an ABLE account is $18,000 in 2024, which is the same as the gift tax exclusion. This includes contributions made by the account owner, as well as any family members or friends.

You can contribute additional funds equal to the lesser of your annual income or the individual federal poverty level for a one-person household in your state for the previous calendar year. For 2024, that’s $15,060 in the continental U.S., $18,810 in Alaska, and $17,310 if you live in Hawaii.

If you receive SSI, the first $100,000 in ABLE account contributions is exempted from the $2,000 SSI resource limit. This means your SSI cash benefit will be suspended if your account exceeds that limit.

The total lifetime contribution limit varies by state and ranges between $235,000 and $596,925. This is based on each state’s limit for education-related 529 savings accounts.

Having multiple ABLE accounts is possible, but the total contributions across all accounts cannot exceed the annual contribution limit.

An ABLE account allows you to save up to $14,000 per year, and there's no limit to how many years you can make contributions.

The contribution limit is indexed to inflation, so it may change over time.

To be eligible for an ABLE account, you must have a disability that occurred before age 26.

You can roll over funds from a 529 plan to an ABLE account, but the beneficiary of the ABLE account must be the same as the 529 plan or a family member of the 529 account holder.

The rollover amount counts toward the annual plan limit of $18,000.

Having more than one ABLE account can be a great option for individuals and families managing disability-related expenses. You can have multiple ABLE accounts as long as the total contributions across all accounts don't exceed the annual contribution limit.

Different states have varying rules and regulations when it comes to ABLE accounts, so it's essential to do your research and speak with a financial advisor before opening multiple accounts. This will ensure you're meeting all the requirements and taking advantage of the benefits available to you.

Each state's ABLE program designates investment options available to account holders.

You can make changes to your investment options, but only up to twice annually.

Investors have a significant amount of control over their investments, but SNT investments are made at the sole discretion of the appointed trustee.

The trustee has a fiduciary responsibility to act in the beneficiary's best interests.

The annual contribution limit for an ABLE account is $14,000 in 2017, which is the same as the federal annual gift tax exclusion. This limit applies to total annual contributions, not the number of SNTs an individual may have.

An individual may have only one ABLE account, and any amount over $100,000 in an ABLE account counts towards the individual's $2,000 resource limit for SSI and Medicaid eligibility.

The total lifetime contributions to an ABLE account are tied to each provider state's limit on total contributions to its 529 College Savings Plan, which varies from approximately $250,000 to $450,000. These lifetime limits would not be reached for decades, even if no disbursements are made from the ABLE account during the accumulation period.