A mother once told me she keeps a three-ring binder on her kitchen counter. Medical records. School reports. Therapy notes. A yellow legal pad with questions written at midnight. What she did not have in that binder was a clear financial plan for when her child turns eighteen.
That’s where ABLE accounts come in.
When we talk about planning for a child with a disability, we usually start with guardianship, special needs trusts, and long-term care decisions. Those are big tools. Heavy tools. Necessary in many cases. But ABLE accounts are different. They are smaller. More practical. They sit closer to the ground.
What Is an ABLE Account?
An ABLE account is a tax-advantaged savings account designed for individuals whose disability began before a certain age. Starting January 1, 2026, that age is forty-six. For children who are minors today, that requirement is almost always met. The disability must have begun before that birthday, and it must involve marked and severe functional limitations expected to last at least twelve months. If your child receives SSI or SSDI, that box is already checked. If not, there is a physician certification process. It is paperwork. It is manageable.
The important part is this: an ABLE account allows money to be saved in your child’s name without automatically disqualifying them from Supplemental Security Income.
That sentence matters more than it sounds.
How ABLE Changes the SSI Equation
SSI is a needs-based program. It has strict resource limits. Two thousand dollars in countable assets, and benefits can be at risk. That number has not kept up with reality. Parents know it. Advocates know it. The math does not work in modern life.
An ABLE account changes that equation. The first one hundred thousand dollars inside an ABLE account is generally ignored for SSI resource purposes. Ignored. It does not count toward that two thousand dollar cap. If the balance goes above one hundred thousand, SSI cash benefits are suspended—not terminated—and they resume once the balance drops back down. Medicaid eligibility continues regardless of the ABLE balance.
That is a structural shift. It allows breathing room.
For 2026, the annual contribution limit is twenty thousand dollars total from all sources—parents, grandparents, friends, anyone who wants to help. If your child eventually works and does not participate in an employer retirement plan, they may be able to contribute additional earned income under the “ABLE to Work” provision. There is also an overall cap—in Missouri, it aligns with the state’s 529 plan limit, currently five hundred fifty thousand dollars.
Autonomy Is the Point
ABLE accounts are owned by the beneficiary. That is different from a traditional special needs trust, where a trustee controls distributions. With ABLE, your child—when appropriate—can use the funds directly for qualified disability expenses.
And the definition of qualified disability expenses is broad. Housing. Rent. Utilities. Food. Transportation. Therapy. Insurance premiums. Assistive technology. Education. Personal support services. If it relates to the disability and improves health, independence, or quality of life, it likely fits.
That flexibility is powerful. It covers the ordinary friction of daily life—the electric bill that spikes in January, the co-pay that insurance does not fully cover, the adaptive device that insurance denies because it is “not medically necessary.” Parents dealing with disability planning know how often that phrase appears in denial letters. ABLE funds can help absorb those hits.
MO ABLE: How It Works in Missouri
In Missouri, the program operates through what is called MO ABLE, administered by the State Treasurer’s office in partnership with the STABLE account platform. Enrollment is online. It takes about ten minutes. You need your child’s Social Security number, date of birth, and a permanent address. If your child is a minor, you will act as the authorized legal representative. The minimum initial deposit is twenty-five dollars.
There are no monthly maintenance fees for Missouri residents as of 2026. Investment options range from conservative savings to growth-oriented portfolios built on Vanguard mutual funds. There is also an FDIC-insured savings option. Some families want growth. Some want stability. That decision should match the time horizon and risk tolerance—just like any other investment account.
There is even a reloadable prepaid debit card option tied to the account. For some families, that card is freedom. For others, it is unnecessary. It depends on the child, the supervision structure, and the comfort level.
ABLE Is Not a Replacement for a Special Needs Trust
An ABLE account is not a replacement for a special needs trust. They serve different roles.
A third-party special needs trust—funded by parents or grandparents—is still the primary long-term planning tool when larger assets are involved. It offers stronger protection. It can hold life insurance proceeds. It can receive inheritances. It can manage substantial sums without the same annual contribution limits.
Think of it this way. If a special needs trust is the vault, the ABLE account is the checking account. The trust holds the larger, long-term assets. The ABLE account handles controlled, day-to-day spending with greater autonomy. For a young adult learning to manage money, that matters. It allows dignity. It allows participation. It allows practice with guardrails.
The Medicaid Payback Conversation
There is one hard conversation families must understand: Medicaid payback. If your child receives Medicaid benefits and there are funds remaining in the ABLE account at death, the state may file a claim to recover Medicaid expenses paid after the account was opened. Funeral and burial expenses are paid first. Outstanding qualified disability expenses can be paid. After that, the state may seek reimbursement.
That is the trade-off embedded in the statute. For many families, the benefits during life outweigh that risk. But it should be understood clearly, not discovered later.
Tax Incentives Worth Knowing
There is a state income tax deduction in Missouri for contributions to a MO ABLE account. Up to eight thousand dollars for single filers and sixteen thousand for married couples filing jointly can be deducted from Missouri adjusted gross income. That does not change federal taxes. But at the state level, it is a meaningful incentive.
There is also a federal Saver’s Credit available to eligible account owners who contribute to their own ABLE accounts, subject to income limits. It is not automatic. It requires filing correctly. But it exists.
These incentives reflect something important: policy has shifted. Lawmakers have recognized that people with disabilities should not be forced into permanent poverty to receive support. The ABLE Act—and its expansion—is an attempt to loosen that trap. It is not perfect. The contribution limits are still finite. The Medicaid payback provision still exists. The SSI resource cap outside of ABLE accounts remains outdated. But it is progress.
The Practical Takeaway
If you have a minor child with a disability, here is what to do. Open the account early. Keep contributions consistent. Coordinate it with any special needs trust planning. Use it for real expenses tied to your child’s life. Keep records of qualified disability expenses. Do not treat it casually. It is a protected account with rules.
And talk to your broader planning team. Guardianship decisions at eighteen. Trustee selection. Letter of intent. Insurance planning. ABLE fits inside that larger structure. Planning for a child with a disability is not one document. It is a system.
The binder on the kitchen counter will not disappear. There will still be forms. There will still be deadlines. There will still be insurance letters that make you shake your head. But adding an ABLE account to that system gives you one more lever. One more layer of stability.
It gives your child a measure of financial breathing room in a system that rarely offers it. And that is not abstract. That is groceries. That is rent. That is a therapy co-pay paid on time. That is a young adult swiping a card and feeling, maybe for the first time, a little more independent.
That is what this tool is for.
Presentation Slides
MO ABLE Financial Independence
