Eligible Hoosiers can open an ABLE (Achieving a Better Life Experience) account since these accounts were established by federal law in 2014. An “eligible” Hoosier is a person who develops a disability before the age of forty-six (46). The person must have had this disability for at least one year or must expect his or her disability to last at least a year.
Indiana ABLE accounts are specifically called “InvestABLE Indiana” accounts. You can vie more information about these accounts at https://savewithable.com/in/home.html. These accounts are savings accounts for disabled Hoosiers akin to the 529 college savings plan accounts for education.
InvestABLE accounts allow disabled Hoosiers to remain eligible for SSI and Medicaid while saving money. Account earnings that are distributed and used for “qualified disability expenses” (defined very broadly under federal law) are not subject to federal income tax.
InvestABLE accounts can be set up by a disabled person, or that person’s parent, guardian, or power of attorney. The total 2026 contribution limit to one INvestABLE account from all sources is $20,000. A person can only have one INvestABLE account, and this account can accrue up to $100,000 before SSI benefits are suspended, or up to $450,000 before Indiana Medicaid benefits are eliminated.
Qualified disability expenses include:
- Education needs;
- Housing costs;
- Transportation;
- Employment support;
- Healthcare services for prevention and wellness; and
- Our favorite – attorney fees!
There is a small cost for the administration of INvestABLE accounts. You can open an account today for your disabled child with a minimum contribution of $25.
It is worth noting that the balance of an InvestABLE account is potentially subject to Indiana Medicaid estate recovery when the account owner dies. For this reason, it is perhaps not advisable to use the INvestABLE account to accrue large amounts of money. However, the risk of estate recovery may be mitigated (but not entirely eliminated) by placing a POD (pay on death) designation on the account so that it passes automatically, without probate, at the account owner’s death.
Kristin L. Steckbeck
March 2026