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A Workplace Benefit Most People Have Never Heard Of
If you have an ABLE account and you are still working, there is a good chance your employer could be helping you save more money — tax-free. The ability to receive an employer contribution to an ABLE account is one of the least-talked-about features of these powerful savings tools, and many workers with disabilities are leaving that benefit on the table simply because they do not know to ask for it.
Whether you are 55 and still going strong in your career, working part-time to supplement your income, or just entering the workforce later in life, understanding how employer contributions work could make a meaningful difference in your financial security.
A Quick Refresher: What Is an ABLE Account?
ABLE accounts are special, tax-advantaged savings accounts designed for people with qualifying disabilities. The money you save in an ABLE account grows tax-free, and withdrawals used for qualified disability-related expenses are also tax-free. Perhaps most importantly, these accounts are structured so that your savings do not automatically disqualify you from critical government benefits like SSI or Medicaid.
Here are the basics worth remembering:
- You can contribute up to $18,000 per year (this amount is adjusted periodically, so check the current limit).
- Balances up to $100,000 do not affect your SSI eligibility.
- Your Medicaid eligibility is protected regardless of your account balance.
- Your disability must have begun before age 26 to qualify — though you can open and use an account at any age after that.
- ABLE accounts are available in most states, and you can open one in any participating state, not just where you live.
How Employer Contributions to ABLE Accounts Work
Thanks to the ABLE to Work Act, which was folded into federal law as part of the Tax Cuts and Jobs Act, employed ABLE account holders gained an important advantage: the ability to contribute beyond the standard annual limit if they are earning income from work. And critically, employers can also make direct contributions to an employee's ABLE account.
Here is how those two pieces fit together:
The Standard Annual Limit
Each year, there is a cap on how much total money can go into an ABLE account. For 2024, that limit is $18,000. This includes contributions from you, your family, friends, and — yes — your employer. All of these count toward that same annual ceiling.
The ABLE to Work Bonus for Employed Individuals
If you are working and your employer does not offer a 401(k) or similar retirement plan that you contribute to, you may be eligible to contribute an additional amount on top of the standard limit. This extra amount is tied to the federal poverty level for a single person, which changes annually. This is sometimes called the ABLE to Work contribution, and it applies only to your own earned income — not to employer contributions.
To be clear: employer contributions count toward the base annual limit, not the ABLE to Work bonus. So if your employer contributes a portion of that $18,000 cap, you still have room to add your own funds — and if you qualify under ABLE to Work, you may be able to save even more on top of that.
Why This Matters for Workers 55 and Older
Many people in their 50s and 60s are still active in the workforce while also managing a qualifying disability. Some are working full-time. Others have scaled back to part-time roles. Either way, if your employer is not making contributions to your ABLE account, you may be missing out on a tax-advantaged benefit that costs the company relatively little to offer.
Employer contributions to ABLE accounts are treated similarly to other employee benefits. They can be a meaningful part of a compensation or benefits package, particularly for workers who may not have access to or be contributing to a traditional retirement plan.
The bottom line: If your employer already offers flexible spending accounts, health savings accounts, or other tax-advantaged benefits, adding ABLE account contributions is a natural extension of that same thinking.
What to Ask Your HR Department
This is where many workers with disabilities can take real action. Because employer contributions to ABLE accounts are still relatively uncommon, your HR team may not even be aware the option exists. Here are some specific questions worth bringing to your next HR conversation:
- Does our company currently offer contributions to ABLE accounts as an employee benefit? If the answer is no, ask whether it is something they would consider.
- Can payroll direct a portion of my salary into my ABLE account? Some employers can set up payroll deductions that go directly into your ABLE account, similar to how 401(k) contributions work.
- What documentation do you need from me? Your employer may need proof that you have an open, valid ABLE account before they can begin contributing.
- How would employer contributions affect my annual limit? Make sure both you and your HR team understand that employer contributions count toward the standard annual cap.
- Does our company offer any matching or contribution programs for disability-related accounts? Some progressive employers have begun including ABLE accounts in their financial wellness programs.
Tips for Making the Conversation Easier
Not everyone feels comfortable raising disability-related topics at work. A few things that might help:
- Frame it as a benefits question, not a disability disclosure. You can simply ask whether the company offers ABLE account contributions as a workplace benefit.
- Bring printed information from your state's ABLE program or from the ABLE National Resource Center, which offers employer-friendly explainers.
- If your company has a benefits committee or open enrollment period, that is an ideal time to raise the topic in a formal way.
Qualified Expenses: What Can You Spend the Money On?
Employer contributions, like all ABLE account funds, must be spent on qualified disability expenses to remain tax-free. These include a broad range of costs tied to your disability and daily life, such as:
- Medical and dental care
- Housing and utilities
- Transportation
- Education and job training
- Assistive technology
- Personal support services
- Health and wellness expenses
The definition of qualified expenses is intentionally broad, which makes ABLE accounts flexible tools for managing the real costs of living with a disability.
Your Next Step: Start the Conversation Today
If you have a qualifying disability, are currently working, and do not yet have an ABLE account — or have one but have never raised the topic with your employer — now is a great time to act. The employer contribution to ABLE account benefit is real, it is legal, and it is available right now to workers who know how to ask for it.
Visit the ABLE National Resource Center at ablenrc.org to find your state's ABLE program, review contribution limits for the current year, and access free resources you can share with your HR team. You can also use their state comparison tool to find the best account options available to you, even if your home state's program is limited.
A little preparation and one conversation with HR could unlock a tax-free savings benefit that works quietly in the background — protecting your benefits, growing your savings, and supporting your financial independence for years to come.
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