Most people have never heard of an ABLE account, but it may be one of the most useful and underused tools in disability financial planning. Melissa Joy, CFP®, is joined by Scott de Varona, division director of MiABLE, Michigan's ABLE savings program, to explain how these accounts let people with disabilities save and invest money without jeopardizing benefits like Medicaid, SSI, and SNAP.

For decades, individuals had to stay under a $2,000 asset limit to keep those benefits. ABLE accounts, modeled after the 529 education savings plan, changed that by giving people with disabilities a legal way to shelter savings, up to $20,000 a year, or $35,650 for those who are employed, while still qualifying for the programs they depend on.

Scott and Melissa cover who qualifies (the eligibility window recently expanded from before age 26 to before age 46), what the money can be used for (housing, transportation, technology, health and wellness, and even funeral expenses, among many other categories), and how the accounts work alongside special needs trusts and other estate planning tools.

They also discuss an important open question: the Medicaid clawback provision that currently allows states to recoup funds from an ABLE account after the owner's death, and the pending state and federal legislation aimed at eliminating it. With an estimated one million Michiganders eligible and fewer than one percent enrolled, this conversation is a reminder that ABLE accounts likely apply to more listeners, or their family members, than they might expect.

What You'll Learn

• What an ABLE account is and how it protects eligibility for Medicaid, SSI, SNAP, and other disability benefits
• Who qualifies: the recent expansion of the eligibility window from disability onset before age 26 to before age 46
• The three ways to prove eligibility, including SSI/SSDI status, the compassionate allowances list, or a physician certification
• 2026 contribution limits: $20,000 annually, plus up to $15,650 more for employed account owners under ABLE to Work
• The wide range of qualified disability expenses, from housing and transportation to assistive technology and funeral costs
• How authorized individuals can manage an account on behalf of someone who lacks capacity
• The current Medicaid clawback provision and the pending state and federal legislation that could eliminate it
• How ABLE accounts can coordinate with special needs trusts and other estate planning strategies

About Scott de Varona

Scott de Varona is the division director of MiABLE, Michigan's ABLE savings program for people with disabilities, and has led the program since its creation. He has worked for the State of Michigan since 1999 in various roles within the Departments of Treasury and Health and Human Services. Scott holds a Bachelor's degree in Business Administration from Northwood University and an MBA from the DeVos Graduate School of Management. Learn more or start an account at Michigan.gov/MiABLE.

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