ABLEnow Account Virginia

What ABLEnow Is

ABLEnow is Virginia's ABLE (Achieving a Better Life Experience) account program, administered by the Virginia College Savings Plan. It allows individuals with disabilities to save money in a tax-advantaged account without losing eligibility for SSI, Medicaid, or other means-tested benefits.

The fundamental problem ABLEnow solves: SSI's resource limit is $2,000. Without an ABLE account, a person with a disability who saves $2,001 in a bank account loses their SSI — and in Virginia, potentially their Medicaid — even if that money was going toward something as basic as a new wheelchair or security deposit on an apartment. ABLEnow lets them save far beyond that limit without jeopardizing benefits.

2026 Contribution Limits

The 2026 standard annual contribution limit for ABLEnow is $20,000. This is a recent change — the ABLE contribution limit was historically tied to the federal gift tax exclusion ($19,000 in 2026), but regulatory decoupling set the 2026 ABLE limit at $20,000 independently.

This $20,000 limit applies to total contributions from all sources combined — the account owner, family members, friends, employer matches. It's not $20,000 per contributor; it's $20,000 total going into the account in a calendar year.

The ABLE-to-Work provision adds significantly more capacity. If the account owner is employed and does not participate in an employer-sponsored retirement plan (401k, 403b, SIMPLE IRA, etc.), they can contribute additional earned income above the $20,000 standard limit. The extra amount is capped at the lesser of their gross annual earnings or the federal poverty line for a single person — $15,650 in 2026.

Maximum possible annual contribution for a working individual: $20,000 + $15,650 = $35,650.

The $100,000 SSI Exclusion

Up to $100,000 in an ABLEnow account is completely excluded from SSI's $2,000 resource limit. The money simply does not count. An individual can have $99,000 in ABLEnow and $2,000 in a checking account and remain SSI-eligible.

If the ABLEnow balance exceeds $100,000 and pushes total countable resources above $2,000, the SSI cash payment is suspended — not terminated. The distinction matters: suspended means the individual stays on the SSI rolls. Medicaid coverage continues unaffected. When the combined countable resources drop back below the limit (through spending from the ABLE account or otherwise), SSI payments automatically resume without a new application.

There is no $100,000 cap on the account balance itself. The total lifetime balance can grow well beyond $100,000 (Virginia's overall account limit follows the state's 529 education savings maximum). The $100,000 figure is only the amount excluded from SSI resource counting.

The ABLE Age Adjustment Act

Effective January 1, 2026, the ABLE Age Adjustment Act expanded eligibility to individuals whose disability onset occurred before age 46. The previous threshold was age 26, which excluded millions of people who acquired disabilities in their 30s or 40s.

For Virginia families, this expansion means more adults with disabilities can open ABLEnow accounts. The account owner must have a qualifying disability that began before age 46 — they don't need to be under 46 when they open the account. A 60-year-old whose disability began at age 30 now qualifies.

Qualifying disability means meeting one of these criteria:

• Currently receiving SSI or SSDI
• Eligible for SSI or SSDI (even if not currently receiving)
• Self-certification of a disability that meets SSA's criteria, with onset before age 46

Virginia's Medicaid Estate Recovery Exemption

This is where ABLEnow stands out from ABLE programs in many other states. By Virginia state statute (effective July 2020), DMAS is prohibited from pursuing Medicaid estate recovery claims against ABLEnow accounts upon the beneficiary's death.

In states without this protection, any remaining ABLE funds at death must first reimburse the state Medicaid agency for benefits paid during the individual's lifetime. Virginia eliminated this payback requirement entirely for its ABLEnow and ABLEAmerica accounts.

Remaining funds can pass to a successor owner (who must be an eligible sibling) or be used to pay outstanding funeral and burial expenses. This makes ABLEnow one of the most protective savings vehicles available in any state for individuals with disabilities.

How ABLEnow Compares to a Special Needs Trust

Both ABLEnow and Special Needs Trusts protect assets from means-tested benefit limits. They serve different purposes and work well together:

ABLEnow is best for active, day-to-day savings. The account owner controls the funds directly (or through an authorized signer). Contributions are limited annually. Funds can be spent on any qualified disability expense — housing, transportation, education, assistive technology, health care, basic living expenses. Setup is simple — open an account online at ablenow.com with no attorney required.

Third-party Special Needs Trust is best for larger assets — inheritances, life insurance proceeds, gifts from family. No annual contribution limit. No Medicaid payback at death (because the funds never belonged to the beneficiary). Requires an attorney to establish and administer. A trustee manages distributions.

First-party Special Needs Trust is required when the individual's own assets (personal injury settlement, direct inheritance) need protection. These carry a mandatory Medicaid payback clause — remaining funds at death reimburse DMAS for benefits paid.

Many Virginia families use both: a third-party SNT for the family's estate plan and inheritance protection, and an ABLEnow account for the individual's employment earnings and day-to-day savings.

The Virginia SSI at 18 & Adult Disability Benefits Guide covers ABLEnow setup, contribution strategies, and how to coordinate ABLE accounts with SSI income rules and Virginia's DD waiver system.

See more Virginia guides →