by Michelle Diament | January 9, 2025
“Starting this month, individuals with disabilities can accrue more money than ever before in a special type of account that allows people to save without jeopardizing access to Medicaid and other government benefits.
Contributions to ABLE accounts can total up to $19,000 for 2025. That’s an increase from $18,000 last year.
The change comes after the Internal Revenue Service raised the federal gift tax limit. Since the cap on annual deposits for ABLE accounts is tied to that figure, it will grow too.
ABLE accounts were established under a federal law a decade ago, offering people with disabilities the opportunity to save up to $100,000 without sacrificing eligibility for Social Security and other government benefits. Medicaid can be retained no matter how much is in the accounts.”