WA State's ABLE Program
Medicaid, depending on the eligibility pathway, often has a $2,000 resource limit. This limit makes it challenging for people to save for items, services, or other life needs.
There are options for people to save money and not risk losing their Medicaid or other public benefits.
One option is the Achieving a Better Life Experience (ABLE) program. By setting up an account through this program, you will have the flexibility to save and still be eligible for programs like Medicaid and SSI.
Like many other states, Washington State has its own ABLE program.
To qualify for ABLE, there are a couple things to know. Let’s check those out!
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Your disability must have started prior to age 26.
On 1/1/2026 this age limit will increase to 46 years old. -
The first $100,000 in your account will not affect your SSI eligibility.
Tips:
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Other people can contribute directly to your ABLE account. -
Cash gifts that are directly deposited into your ABLE account do not count as unearned income when calculating an SSI cash benefit. -
Employers can deposit money in your ABLE account; however, these funds will count as earned income. -
ABLE accounts allow up to $20,000 (2026) in standard deposits annually. If working, you may be able to deposit an additional $15,650 (2026) to your account under the ABLE to Work Act. For more information, please click here. -
Money in your ABLE account is not counted as a resource by Social Security or Medicaid unless it is above the following limits:
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Over $100,000 – SSI eligibility may be terminated -
Over $500,000 – Medicaid eligibility may be terminated.
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There are different ways to invest your money and you are not taxed on your investments. -
ABLE account holders are provided with a debit card for account spending.
Spending ABLE Funds
Funds in an ABLE account can be used for “qualified disability-related expenses”. This can cover a lot of areas including basic living expenses, housing, transportation, employment support, assistive technology, health care, or other services that help with your health, independence, or quality of life. Funds in an ABLE account can also be used for recreational or other life experiences but cannot be used for ineligible expenses like gambling or illegal activities.
Yes! Diversifying your savings accounts gives you flexibility and options when managing your money and budgeting for your future.
For a comparison of the ABLE and DDETF programs, check out this document.
Please note:
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Funds can be dispersed from the DDETF trust as a contribution to the ABLE account -
Funds cannot be moved from the ABLE to the DDETF special needs trust account.
Medicaid Payback - Estate Recovery
States can recover the costs of long-term care and other medical services paid for by Medicaid from a person’s estate. This is called Estate Recovery, or Medicaid Payback.
In Washington State, the State may seek reimbursement from the estate of a person who has passed away. For ABLE accounts holders, this means that any money remaining in the account at the time of death could be recovered by the state. More information about Estate Recovery can be found here.
A few key details to know about ABLE Account Estate Recovery:
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The amount that the State can recover is limited to actual Medicaid expenditures. -
The State can recover costs from an ABLE account for expenses incurred since the ABLE account was opened. -
Qualified expenses that are unpaid at the time of the beneficiary's death can still be paid from the ABLE account. This may include funeral or burial expenses. -
After qualified expenses have been paid, Medicaid recovery would begin. If any funds are left in the ABLE account after recovery, this money will be distributed to the beneficiaries named in a will, or by state laws if there is no will. Recovery will happen regardless of who deposited the funds into the account.
Keep in mind, the purpose of an ABLE account is for this money to be spent within a person’s lifetime to “Achieve a Better Life Experience.”
For this reason, you may want to consider what combination of standard bank accounts, ABLE account, and/or Special Needs Trusts will best meet your needs.
For more information and answers to frequently asked questions about ABLE accounts, please visit the ABLE website.