Achieving a Better Life Experience (ABLE) Accounts*

Qualified individuals with disabilities from South Dakota may contribute to an Achieving a Better Life Experience (ABLE) account without jeopardizing eligibility for federally- and state-funded, means-tested benefits such as Social Security and Medicaid. Although South Dakota does not have its own ABLE program, many state ABLE programs allow South Dakotans to open an account.  Summary information on ABLE programs that accept South Dakotans as account holders.

ABLE accounts are made possible by the federal Achieving a Better Life Experience (ABLE) Act passed by Congress in 2014 and South Dakota's ABLE law which became effective July 1, 2016. Previously, individuals receiving assistance through Social Security, Medicaid and other publicly-funded programs could save a maximum of $2,000 before they started to lose their benefits. With nationwide ABLE programs, individuals with disabilities that occurred before the age of 26 and their families may be able to contribute, subject to federal and state limits, to an ABLE account without affecting the individual's eligibility for state and federal benefits. The funds can be used for qualified disability-related expenses including education, assistive technology, personal support services, housing, healthcare and transportation. Visit ABLE National Resource Center to access educational resources, including free videos and informational webinars.

ABLE accounts are similar to 529 college savings accounts and Roth IRAs. Account options may include a cash account (ex. checking or money market account) and a variety of investment portfolios with varying degrees of risk.