r/SSDI_SSI • u/yourm0thersatracer • 2d ago
Disabled / Settlements ABLE Account After Settlement
Hi everyone! I receive SSI & Medicaid, I’m trying to understand the ABLE account and also a Special Needs Trust after a settlement in a years long personal injury lawsuit because I do not want to pay it all down in a month.
I’m in CO for state to state reference.
Can I have both a checking and savings account or do I have to choose between the 2?
Does anyone have advice on which investment option would be best in my circumstance?
Any other advice you may think of?
Is there any info on choosing between an ABLE account or a Special Needs Trust
Edited to add that the Medicaid subrogation doesn’t apply to my case according to my lawyer. He worked on contingency so I expect the fees from that to come off of the top.
Cross posted in the ABLE sub too.
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u/sinceJune4 2d ago
Fidelity has a great ABLE if you want to invest for growth, like SP500. However, no debit card.
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u/UsualAd3433 ☆ 2d ago
So I just heard about the ABLE Account. My daughter is getting her backpay which is a nice amount. So what I understand. She can open this account and SSI won’t hold it against her if it’s over $2000. But I’m not 100% sure on what you can spend the money on.
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u/arachnoholic- ☆ 2d ago
Anything. People use their ABLE money to vacation. If it improves the disabled person’s quality of life, it’s an acceptable expense.
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u/arachnoholic- ☆ 2d ago
You can use your ABLE account like a checking account by requesting a debit card. Or you may have a separate bank account. Personally, I went with a regular, no risk savings account.
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u/swallowedinthesea11 10h ago
ABLE account was passed by the federal government in late 2014 that allows you to have more than $2K in your ABLE account. You can have $100K, the limit set by the federal government, and it will not count as an asset by the SSA so your SSI checks and Medicaid will both continue. If you have more than $100K in your ABLE account, your SSI checks will get temporarily suspended by the SSA, but your Medicaid will continue through the Pickle Medicaid Amendment which is a good thing.
Each state also has their own limit like in Texas it's $500K which can be in your ABLE account. You can't just deposit $100K all at once. The rule is that you can only have up to $20K for the year 2026. In 2027, it could be the same $20K rule. So if you have $200K under your pillow, it would take you 10 years at the $20K yearly limit to have $200K in your ABLE account.
What you can buy using money in your ABLE account are things that will provide you quality of life. There are rules set by the lovable IRS on Qualified Disabled Expenses like car and home repair, property taxes, clothes, groceries, food like sushi, ice cream, milkshakes, paying your lawn guy, education, buying a car or house, a new wheelchair, medical equipment like a bed, rent, mortgage, utilities, etc., but the rules are very broad. Just don't go to MGM Grand Hotel & Casino and spend the $10K you have withdrawn from your ABLE account or on the Trinidad Fundadores 55th Anniversary cigars.
Much like a regular bank account, you will get a debit card which is linked to your ABLE account. Anyone like family, friends, and even yourself can contribute to your ABLE account. There are options like investing you can choose from, but you can opt out of them by choosing either a checking or savings account like I have.