Finding the Funds to Save in an ABLE Account

In general, SSI excludes and does not count the first $65 of monthly earnings ($85 if no unearned income) and 50 percent of remaining earnings when adjusting the monthly SSI payment. These exclusions (and exclusions related to other SSI work incentives) create extra disposable income that could be contributed to an ABLE account. See Understanding Supplemental Security Income SSI Work Incentives (2021 Edition), https://www.ssa.gov/ssi/text-work-ussi.htm.

The SSI program’s SEIE is available to a student regularly attending school (in public school, college, some training programs and some home schooling) under age 22 and excludes up to $2,040 of monthly gross earnings up to a maximum of $8,230 per year.

During TWP, the beneficiary keeps the monthly SSDI payment and monthly earnings, no matter how high those earnings are. See Trial Work Period, https://www.ssa.gov/oact/cola/twp.html.

Beneficiary should consider contributions from earnings for any TWP months, i.e., when monthly earnings exceed the amount needed to use one TWP month ($1,050 in 2023, or 80 hours work in self-employment). The beneficiary will get both SSDI and a paycheck during the TWP. After the TWP, the beneficiary will also continue to receive both during the Extended Period of Eligibility (following the ninth TWP month), when countable earnings in a month are below the current year’s substantial gainful activity level. See Extended Period of Eligibility, https://choosework.ssa.gov/blog/2018-05-23-extended-period-of-eligibility.