Both ABLE accounts and special needs trusts protect benefits, but they serve different purposes.
ABLE Accounts
What They Are
Tax-advantaged savings accounts for people with disabilities.
Eligibility
Disability onset before age 26.
Contribution Limits
$17,000/year (2024), lifetime varies by state.
Benefits
- Tax-free growth
- Beneficiary can control
- Simple to set up
- Low cost
Limitations
- Asset cap ($100,000 for SSI purposes)
- Medicaid payback at death
- Limited to one account
Special Needs Trusts
Benefits
- No contribution limits
- No asset limits
- Greater flexibility
- Can be third-party (no payback)
Considerations
- More expensive to create
- Requires trustee
- More complex administration
Using Both Together
Many families use both:
- ABLE for day-to-day expenses
- SNT for larger amounts and long-term planning
Make the Right Choice
Pioneer Credit Solution helps you understand your options. Call 1-888-271-2293.