Maryland ABLE accounts: how the program helps people with disabilities save and protect benefits

Kelly Nelson, outreach and communications manager for Maryland ABLE, described ABLE accounts as a federal‑law tool (the Achieving a Better Life Experience Act) that allows people with disabilities to save money without losing means‑tested benefits like SSI and Medicaid. "Thanks to federal legislation called the Achieving a Better Life Experience Act," Nelson said, "states across the country can offer ABLE accounts so that people could save up to $100,000 in their ABLE account, and it is not a countable resource by Social Security and Medicaid."

Nelson explained eligibility: onset of the qualifying disability must have occurred before age 46 (a change effective January 1 that expanded access from the previous limit) and beneficiaries may demonstrate qualification by receiving SSI or SSDI or by submitting a physician certification form. She emphasized account ownership: the person with a disability is the account owner; an authorized legal representative (parent, guardian, spouse, conservator or representative payee) may open and manage accounts when appropriate.

Nelson reviewed what counts as a qualified disability expense (QDE) — broadly, any item or service that supports health, independence or quality of life — and gave examples ranging from wellness activities and assistive technology to housing costs (rent or furnishings), transportation, education and even funeral expenses. She noted two exclusions highlighted by the IRS: gambling and gifts to other people.

Practical mechanics matter: Nelson said Maryland ABLE enrollment is quick (about 15–20 minutes online), requires a $25 initial deposit (not a fee), and carries an annual maintenance fee of $35 (prorated quarterly); an optional prepaid card costs $1.25 per month. Annual contribution rules are $20,000 per calendar year with additional 'Able to Work' contributions possible for eligible workers (an example additional amount mentioned was $15,650). She also described Maryland tax benefits (a state income subtraction of up to $2,500 per person, or $5,000 for married filing jointly) and program statistics: roughly 8,677 Maryland ABLE account holders with approximately $141,000,000 saved and about $3,000,000 received via the gifting page feature.

Nelson compared ABLE accounts with special needs trusts: trusts accept larger inheritances and have different restrictions (for example, trusts may not permit direct account access by the beneficiary), while ABLE accounts are quicker to set up and allow account holders autonomy when they are able. She closed by directing attendees to the Maryland ABLE website and contact email for enrollment assistance and resources.