Investing with Disability Income and ABLE Accounts

Key Takeaways

• SSI has a resource limit of $2,000 for individuals. Most savings and investment accounts count toward this limit. ABLE accounts up to $100,000 are excluded.
• SSDI has no resource or asset limit. Investing does not affect SSDI. Earned income above the Substantial Gainful Activity threshold ($1,620 per month in 2026) can affect SSDI eligibility if the recipient is also working.
• ABLE accounts allow tax-free growth and tax-free withdrawals for qualified disability expenses. The annual contribution limit is $18,000 (2026). Eligible working individuals can contribute additional amounts from earned income up to $14,580 (2026 federal poverty line for one person).
• As of 2026, the ABLE account age-of-onset rule expanded from age 26 to age 46 under SECURE 2.0, making many more people eligible.
• Special Needs Trusts (SNTs) and pooled trusts are additional tools for holding assets above ABLE limits without affecting SSI, typically used for larger asset amounts.

SSI vs. SSDI: Asset Rules

SSI (Supplemental Security Income) is a needs-based benefit with strict resource limits. An individual receiving SSI may not have more than $2,000 in countable resources (couples: $3,000). Countable resources include savings accounts, checking accounts, stocks, bonds, and most other financial assets. Exceeding the limit results in benefit suspension until resources are spent down below the limit.

SSDI (Social Security Disability Insurance) is an insurance benefit based on work history and contributions to Social Security. SSDI has no resource or asset test. Investment accounts, savings, and property do not affect SSDI. The only income-related threshold is Substantial Gainful Activity (SGA): working and earning above the SGA threshold ($1,620 per month in 2026 for non-blind individuals) can trigger a review of disability status.

ABLE Accounts

ABLE accounts were created under the Achieving a Better Life Experience Act of 2014 and allow eligible individuals with disabilities to save without affecting SSI eligibility up to a balance of $100,000. Above $100,000, SSI is suspended (not terminated) until the balance falls below $100,000 again.

Contributions to an ABLE account are not federally tax-deductible, but investment earnings grow tax-free and withdrawals for qualified disability expenses are tax-free. Qualified disability expenses are broadly defined and include basic living expenses, education, housing, transportation, health and wellness, and assistive technology. The annual contribution limit is the federal gift tax annual exclusion ($18,000 in 2026). Eligible employed ABLE account owners can contribute additional amounts from their own earned income up to the federal poverty guideline for a one-person household.

ABLE Account Eligibility Under SECURE 2.0

The original ABLE account law required that the qualifying disability began before age 26. SECURE 2.0 expanded this to before age 46, effective January 1, 2026. This change makes a substantially larger population eligible, including people who acquired a disability during working years but previously did not qualify due to the age restriction.

Investing for SSDI Recipients

SSDI recipients face no resource limits and can invest in IRAs, brokerage accounts, and other accounts freely. The constraint is earned income: working above the SGA threshold while receiving SSDI triggers review periods and may eventually end SSDI. SSDI includes a Trial Work Period (9 months of earning above $1,110 per month in 2026) during which benefits continue while the person works. After the trial work period, benefits stop if earnings remain above SGA.

Special Needs Trusts

A Special Needs Trust (SNT) or pooled trust can hold assets above ABLE account limits for SSI recipients without affecting benefit eligibility. SNTs must be structured to supplement (not replace) government benefits and must not make distributions for basic support and maintenance that SSI is intended to cover. These arrangements are complex and require an attorney experienced in disability law.

Frequently Asked Questions

What is an ABLE account and who can open one?

An ABLE account (Achieving a Better Life Experience) is a tax-advantaged savings account for individuals with significant disabilities that began before age 26 (expanded to age 46 under SECURE 2.0 effective 2026). Contributions are not federally tax-deductible, but investment earnings and qualified withdrawals are tax-free. An ABLE account balance up to $100,000 is excluded from SSI's resource limit of $2,000. The annual contribution limit is the federal gift tax annual exclusion ($18,000 in 2026). Eligible individuals with earned income can contribute additional amounts from their own earned income.

Does investing in a brokerage account affect SSI benefits?

SSI (Supplemental Security Income) has a resource limit of $2,000 for individuals and $3,000 for couples. Savings, brokerage accounts, and most investment assets count toward this resource limit. Exceeding the limit makes a recipient ineligible for SSI. ABLE accounts up to $100,000 are excluded from SSI's resource limit. SSDI (Social Security Disability Insurance) does not have an asset or resource limit, so investment accounts do not affect SSDI benefit eligibility.

Can a person on SSDI or SSI have a Roth IRA?

SSDI recipients can contribute to a Roth IRA if they have earned income (wages or net self-employment income) within the annual earned income and IRA contribution limits. SSDI itself is not earned income. SSI recipients face complexity because IRA balances count as resources for SSI purposes, which can push total resources above the $2,000 limit and suspend SSI benefits. An ABLE account is typically a better savings vehicle for SSI recipients because ABLE balances up to $100,000 are excluded from SSI's resource count.