Can I Open an ABLE Account at a Bank?

An ABLE (Achieving a Better Life Experience) account offers a financial pathway for individuals with disabilities to save and invest without jeopardizing their eligibility for essential government benefits. This specialized savings tool helps individuals build financial security by allowing savings for disability-related expenses, fostering greater independence and an improved quality of life.

Understanding ABLE Accounts

An ABLE account is a tax-advantaged savings and investment account created under Section 529A of the tax code. Its main objective is to help individuals with disabilities save and pay for qualified disability expenses (QDEs) without losing eligibility for means-tested government benefits like Supplemental Security Income (SSI) or Medicaid. Funds held in an ABLE account, up to $100,000, are not counted as a resource for SSI purposes, and any amount up to the state plan limit does not affect eligibility for programs like Medicaid.

To be eligible for an ABLE account, an individual’s disability must have begun before age 26. This age requirement will expand to before age 46 starting January 1, 2026, due to the ABLE Age Adjustment Act. Eligibility is tied to disability certification; individuals must be receiving SSI or Social Security Disability Insurance (SSDI) benefits, or have a licensed physician certify they have marked and severe functional limitations that began before age 26.

Qualified disability expenses are broadly defined and include costs aimed at helping the account owner increase independence, maintain health, and improve quality of life. These expenses can cover education, housing, transportation, employment training and support, assistive technology, personal support services, medical care, prevention and wellness, financial management, and even funeral and burial expenses. Any growth in the account from investments is not taxed, and withdrawals for QDEs are also tax-free.

Where to Open an ABLE Account

Many wonder if they can open an ABLE account directly at a local bank, like a traditional savings or checking account. ABLE accounts are not offered as direct products by conventional banks. Instead, they are established and administered by individual states as part of their Section 529A Qualified ABLE Programs. While some state programs partner with financial institutions to manage underlying investments, the account itself is opened through the state’s ABLE program portal.

An individual can open an ABLE account in their home state’s program. Many state ABLE programs also allow out-of-state residents to enroll, offering flexibility if another state’s program aligns better with the individual’s needs. Researching various state programs is important, as some offer state income tax deductions for contributions or provide specific features like debit cards or FDIC-insured checking account options. The ABLE National Resource Center website serves as a comprehensive resource, offering tools to compare different state programs and direct links to their application portals.

Information Needed to Open an ABLE Account

Before applying for an ABLE account, gather specific information and documentation. For the eligible individual, this includes their full legal name, date of birth, mailing address, Social Security Number (SSN), email address, and phone number. Some programs may also request identification details, such as a driver’s license or state-issued ID card, and proof of U.S. citizenship or resident alien status.

If an Authorized Individual (such as a parent, legal guardian, or person with power of attorney) will manage the account, their personal information, including their name, date of birth, SSN, and contact details, will also be required. The relationship of the Authorized Individual to the account owner must be specified, and legal documentation like a power of attorney or court order may be needed to confirm their authority to act on the beneficiary’s behalf.

Disability verification is a key component of the application. If the eligible individual receives SSI or SSDI, documentation of these benefits suffices as proof of eligibility. If not, a signed Physician’s Diagnosis Form or similar disability certification from a licensed physician is necessary, confirming the disability meets federal criteria and began before age 26. While many programs allow self-certification during online enrollment, applicants should retain a copy of the physician’s diagnosis or benefit letter, as it may be requested for verification by the ABLE program or the IRS. Prepare details for the initial contribution, such as bank routing and account numbers for electronic transfers or information for mailing a check.

Steps to Open and Manage Your ABLE Account

Once all necessary information and documentation are gathered, opening an ABLE account involves a straightforward application process. Most state ABLE programs offer online applications through their dedicated websites. Some programs also provide options for paper applications or telephone assistance for enrollment.

After submitting the application, applicants can expect to receive confirmation, and the program administrator will process the enrollment. Upon account approval, the account holder or Authorized Individual can begin managing the ABLE account. Contributions can be made through various methods, including electronic transfers from a linked bank account, checks, or direct deposit of government benefits. Some programs also offer gifting platforms, allowing friends and family to contribute easily.

Managing the account involves understanding how to make qualified withdrawals. Most ABLE programs facilitate withdrawals through online requests, by submitting a withdrawal form, or via a program-specific debit card. Withdrawals must be used for qualified disability expenses to maintain the tax-advantaged status and preserve eligibility for means-tested benefits. Account holders can manage their investment options within the program’s online portal, selecting from various portfolios offered by the state plan.