By Published On: June 8, 2026

Advantages Of PA ABLE Accounts For Disabled Adults

“Before ABLE, saving for the future was impossible to do for too many Pennsylvanians, which was a disgrace. Thankfully, Americans with disabilities can now live more independently and save for the future. I’m grateful that this tremendous program has increased opportunities for people with disabilities and their families for 10 years, and I encourage everyone to learn more about PA ABLE.” – Pennsylvania State Treasurer Stacy Garrity

Why open a PA ABLE Account?

Historically, disabled adults receiving needs-based government benefits were heavily restricted from saving money. Having more than $2,000 in countable assets could mean disqualification from programs like Medicaid and Supplemental Security Income (SSI). In 2016, the Pennsylvania Achieving a Better Life Experience (PA ABLE) Act changed that. As of 2026, disabled adults can save up to $100,000 in a PA ABLE account that is excluded from countable assets for the purpose of ascertaining Medicaid and SSI eligibility.

Eligibility and Opening an Account

To enroll in PA ABLE, you must have a qualifying disability that started prior to age 46 demonstrated by either:

  • Entitlement to Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits based on blindness or disability; or
  • Self-certification of a disability.

If you meet these requirements, you can open PA ABLE account regardless of your current age.

What Can the Funds Be Used For?

Although not an exhaustive list, funds in a PA ABLE account may be used for the following categories and examples:

  • Education: Tuition for preschool through postsecondary education, books, supplies, and educational materials.
  • Housing: Purchase of a primary residence, mortgage payments, property taxes, rent, utilities, home modifications, maintenance, and repairs.
  • Transportation: Public transportation, purchase or modification of vehicles.
  • Employment Training and Support: Job-related training and costs to help obtain or maintain employment.
  • Assistive Technology and Personal Support Services: Communication devices, hearing aids, mobility aids, and residence or vehicle modifications to improve accessibility and accommodate their disability.
  • Health: Mental health, medical, dental, and vision expenses not covered by insurance, such as insurance premiums, doctor visits, prescriptions, medical equipment, habilitation or rehabilitation, therapy, personal care attendants, in-home support services, and long-term care.
  • Prevention and Wellness: Nutritional management, respite care, fall prevention tools, bed rails, adaptive exercise equipment, specialized hygiene products, and medical monitoring devices.
  • Financial Management and Administrative: Hiring a financial planner and tax preparation services.
  • Legal Fees: Legal costs to establish and manage a PA ABLE account.
  • Oversight and Monitoring: Hiring caregivers, personal attendants, or supervisors to ensure the individual’s safety and well-being.
  • Funeral and Burial Services: Memorial service arrangements, burial plot or cremation fee, and burial site markers.

You do not need prior approval from the Treasury Department to make a withdrawal so long as the funds cover items in the above categories and examples. Note that using the funds for non-qualified expenses can have tax consequences and can impact an individual’s eligibility for needs-based benefits.

Advantages of PA ABLE Account

Some advantages of a PA ABLE account include:

  • Inheritance Tax Exemption: Funds held in a PA ABLE account are completely exempt from the Pennsylvania inheritance tax;
  • Tax-Free Withdrawals: Withdrawals used for qualified disability expenses are entirely exempt from state and federal income taxes; and
  • State Tax Deduction: Pennsylvania residents can deduct up to $19,000 per year in PA ABLE contributions from their state income taxes.

PA ABLE Account Options and Fees

Only the PA ABLE checking account option is FDIC-insured. But there are other investment options that are similar to retirement accounts, e.g., varying blends of stocks, bonds, and cash, with the combinations ranging from conservative to aggressive.

PA ABLE accounts are free to open and have an annual fee of $56 ($14.00 per quarter). Selecting e-delivery reduces the annual fee to $31 ($7.75 per quarter). For the checking account, a monthly fee of $2applies, but is waived if you maintain an average monthly balance of at least $250.

Learn More

To learn more about eligibility or to open an account, visit paable.gov, email info@paable.gov, or call 855-529-2253.