Can You Buy Food with an ABLE Account and What Else is Covered

You can use an ABLE account to buy food, but only if you're purchasing food for a disability-related expense. This can include groceries for a dietary restriction or a special diet required due to a disability.

ABLE accounts can also be used to pay for household expenses related to a disability, such as home modifications or assistive technology. These expenses can be a huge help in making your home more accessible and comfortable.

ABLE accounts are designed to help people with disabilities save for and pay for disability-related expenses, so using them for food and household expenses is a great way to stretch your dollars.

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With an ABLE account, you can buy a variety of things that help improve your independence and quality of life.

You can use funds from an ABLE account to pay for employment training and support, which can help you develop new skills or advance in your current job.

Education is another area where ABLE account funds can be used, whether it's to learn a new skill or pursue further education.

Personal assistance and care are also eligible expenses, which can include help with daily living tasks or medical care.

ABLE account funds can be used for specialized technology or health care not covered by Medicaid or Medicare, which can be a big help if you need equipment or services that aren't covered by your insurance.

Other expenses that may be eligible for ABLE account funds include things that improve your independence, such as home modifications or accessibility equipment.

Here are some examples of qualified disability expenses that can be paid with ABLE account funds:

You can use an ABLE account to pay for everyday living costs, such as employment training and support, education, personal assistance and care, and specialized technology or health care not covered by Medicaid or Medicare.

ABLE accounts can also be used to pay for shelter and food expenses, which can be a big help for individuals with disabilities who receive SSI benefits.

Some examples of qualified expenses that can be paid with an ABLE account include:

It's essential to keep good records about how you use the funds in your ABLE account, as you can face penalties if you use the funds for expenses other than qualified disability expenses.

Using an ABLE account to pay for food and shelter expenses can be a game-changer for SSI beneficiaries.

If the beneficiary has a Special Needs Trust, the trustee can fund an ABLE account, regardless of the type of trust.

This can increase the beneficiary's annual income by approximately $3,000 annually, as it eliminates the in-kind support and maintenance deduction from SSI.

ABLE accounts can be used for all payments toward "qualified expenses", which include shelter and food.

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You can refer to the California ABLE website for a description of qualified expenses.

Social Security has also published a procedure on the use of ABLE accounts for shelter and food expenses.

Proper use of an ABLE account can eliminate the in-kind support and maintenance deduction, but it requires careful monitoring of withdrawals.

For example, if a beneficiary withdraws $1000 from their ABLE account and deposits it into their checking account, but then pays their rent from that account, they may still trigger a loss of benefits if their account balance exceeds $2,000 for the month.

ABLE accounts are tax-favored savings accounts established to provide secure funding for disability-related expenses on behalf of designated beneficiaries deemed disabled before age 26.

The Tax Increase Prevention Act of 2014 specifically excludes ABLE account funds from income and resources for SNAP purposes, as stated in section 103(a) of the Act.

For the purpose of determining SNAP eligibility, any amount in an ABLE account, including earnings, is disregarded. This means that these funds will not be counted as income or resources.

ABLE accounts are similar to 529 educational accounts, which are already excluded from resources under the Food and Nutrition Act of 2008, as amended.

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