Most major banks and some credit unions offer ABLE accounts, but not all branches carry them

An ABLE account is a tax-advantaged savings account for people with disabilities that lets you hold up to $235,000 without losing SSI or Medicaid benefits (as of 2024). The account itself is offered through regular banks and credit unions, but availability varies by institution and by state. You cannot open an ABLE account at every branch of a bank that offers them — you often have to go through a specific program or online portal.

The accounts are created and managed by state ABLE programs, which contract with financial institutions to hold the money. This means your bank is the custodian, but the program sets the rules. Not every bank wants to participate, and some states have more options than others. If your bank does not offer ABLE accounts, you can open one through a participating bank in another state — ABLE accounts work across state lines.

Key Takeaways

  • Major banks including Fidelity, Sallie Mae Bank, and TD Bank offer ABLE accounts through state programs, but you must open them through the state program portal, not at a regular branch.
  • Your state ABLE program determines which banks participate, so the options available to you depend on where you live.
  • If your state program has few or no participating banks, you can open an ABLE account through a bank in another state and use it from your home state.
  • ABLE accounts have no monthly fees at most participating institutions, but some charge annual maintenance fees or require minimum balances — check your state program's details before opening.
  • You must have a disability that began before age 26 and meet income limits to open an ABLE account, regardless of which bank holds it.

Banks that participate in state ABLE programs

Fidelity Investments manages ABLE accounts in multiple state programs, including New York, California, and others. Sallie Mae Bank holds ABLE accounts for several states. TD Bank participates in some northeastern state programs. Ascent Federal Credit Union offers ABLE accounts in certain states. The full list changes as programs add or remove participating institutions, and not every bank operates in every state program.

To find which banks are available in your state, you need to visit your state's official ABLE program website. Each state runs its own program — there is no single national ABLE account. Your state program lists the participating financial institutions, the fees they charge, and how to open an account. If you live in a state with limited options, you can research ABLE programs in other states and open an account there instead.

How to find your state's ABLE program and participating banks

Start by searching "[your state] ABLE program" or visiting the National ABLE Network website, which links to all state programs. Once you find your state program's official site, look for a section labeled "Financial Institutions," "Participating Banks," or "Open an Account." This page will show you every bank or credit union that holds ABLE accounts in your state, along with their fees and features.

If your state program has no participating banks or only one option and you want more choices, you can open an ABLE account through another state's program. You do not have to live in that state. For example, if you live in a state with no ABLE program or limited bank options, you could open an account through the New York ABLE program or California's program. You would still use the account from your home state — the account location does not restrict where you live or work.

Fees and account features to compare

Most banks that offer ABLE accounts charge no monthly maintenance fee, but some charge annual fees ranging from $12 to $36 per year. A few require a minimum opening deposit or minimum balance to avoid fees. Some offer debit cards with no fee; others charge $5 to $15 for a card. Interest rates on savings balances vary widely — some accounts earn less than 0.01% APY, while others offer rates closer to 4% or 5% depending on market conditions and the bank's current offerings.

Check your state program's comparison table before opening an account. The table usually shows the annual fee, minimum balance requirement, debit card cost, interest rate, and whether the bank offers online access or mobile banking. If you plan to use the account primarily for savings rather than frequent withdrawals, a higher interest rate matters more than debit card features. If you need to withdraw money regularly, a bank with a free debit card and no minimum balance is more practical.

What you need to open an ABLE account

You must have a disability that began before age 26 and meet the income and asset limits set by your state program. Most states use the SSI income and resource limits as a baseline, though some have slightly different thresholds. You will need to provide proof of your disability — usually a letter from Social Security, a disability information letter, or documentation from a doctor. You will also need a Social Security number and a government-issued ID.

The process process happens through your state program's website or portal, not directly with the bank. You fill out the ABLE account process, upload your disability documentation, and the program verifies your information. Once approved, the program tells the participating bank to open your account. The whole process typically takes one to three weeks. After that, you can manage the account online, by phone, or at a branch if the bank has physical locations near you.

ABLE account limits and how they affect benefits

You can hold up to $235,000 in an ABLE account without losing SSI cash benefits (this limit is adjusted annually for inflation). Money in the account does not count toward the SSI resource limit. However, income earned by the account — such as interest — does count as income for SSI purposes and may reduce your monthly benefit. If you receive Medicaid, the ABLE account does not affect your coverage in most states, though a few states have different rules.

You can contribute up to $18,000 per year to your ABLE account (2024 limit, adjusted annually) without triggering gift tax issues. If someone else contributes on your behalf, they can give up to $18,000 per year without tax consequences. Contributions above that amount may require filing a gift tax return, though they do not necessarily result in taxes owed. If you work, your wages can go directly into the ABLE account without counting against the contribution limit.

What happens if your bank stops offering ABLE accounts

If your bank exits the ABLE program, your state program will notify you and give you time to move your money — usually 30 to 90 days. You can transfer your balance to another participating bank in your state program, or to an ABLE program in another state. The transfer is handled by the programs, not by you directly, so you do not have to contact the banks yourself. Your account number and debit card will change, but your money stays protected throughout the move.

This is rare but has happened in a few states when banks decided ABLE accounts were not profitable enough to maintain. If you are concerned about stability, choose a large national bank like Fidelity or TD Bank over a smaller regional institution, as they are less likely to exit the program. You can also check your state program's website periodically to see if any banks have announced they are leaving.

Frequently Asked Questions

Can I open an ABLE account online, or do I have to go to a bank branch?

You open the account through your state ABLE program's website, not at a bank branch. The process and approval happen entirely online. Once your account is open, you can manage it online or by phone with the bank. Some banks have physical branches where you can deposit checks or withdraw cash, but you do not need to visit a branch to open the account.

What if my state does not have an ABLE program?

A few states do not run their own ABLE programs. If yours is one of them, you can open an account through another state's program — you do not have to live in that state. The National ABLE Network website lists all state programs and shows which ones are open to residents of other states. You would then use that out-of-state account from your home state with no restrictions.

Can I have more than one ABLE account?

No, federal law allows you to have only one ABLE account at a time. If you already have an account and want to switch to a different bank, you must close the first account before opening a new one. The $235,000 limit applies across all ABLE accounts combined, so having multiple accounts would not give you more room to save.

Do ABLE accounts affect my Medicaid coverage?

In most states, ABLE accounts do not affect Medicaid may be able to access or coverage. However, a small number of states have different rules, so check with your state Medicaid office or your state ABLE program to confirm. Interest earned in the account counts as income for SSI purposes but typically does not affect Medicaid in the same way.

What if I need to withdraw money for an emergency?

You can withdraw money from your ABLE account at any time with no penalty. Use your debit card at an ATM, transfer money online to another bank account, or write a check if your account supports it. Withdrawals do not count against the annual contribution limit, so you can withdraw and re-deposit money without affecting how much you can save that year.