ABLE Account Decision Guide Series

Determining Whether Something is a Qualified Disability Expense (QDE)

Rent or Mortgage Payments a QDE Through ABLE Account , if Designated Beneficiary Gets Supplemental Security Income

This is because a housing QDE payment for rent or mortgage (or other housing costs) will not count as income in the Supplemental Security Income (SSI) program and the monthly SSI payment will not be affected by this payment.

See POMS SI 01130.740 C.4. The designated beneficiary should, of course, seek any federal or state housing subsidy payments before using the limited ABLE account resources for rent.

Best Practice: Use SSI to pay for housing and food; extra SSI may then be saved in an ABLE account.

→If designated beneficiary contributes his or her own money and then it is used for rent/mortgage: SSI program still counts any monthly earned income deposited into ABLE as income. ABLE distribution for rent is not counted by SSI as beneficiary’s income. Distribution and payment or for other housing expenses must occur within same month; if distribution is retained into following month, it is counted as part of resources by SSI and means-tested benefit programs.

→If a third party, such as a parent or a trust directly deposits the money and then it is used for rent/mortgage: SSI program will not count.

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Note: Our ABLE Decision Guide Series is designed as an aid to decision making as it relates to establishing and using an ABLE account. This document does not cover every possible issue related to the topic and is not a substitute to more in-depth analysis that may be required in some cases.