The Maryland ABLE Account: A Parent's Guide

Maryland ABLE gives families of autistic children a way to save and invest without endangering SSI or Medicaid — and Maryland pairs it with two features parents should know about: a state income tax subtraction for contributions, and a state law that shields ABLE funds from most Medicaid estate recovery.

Here's how the program works in 2026. Confirm current details at marylandable.org before enrolling.

Quick facts

• Program: Maryland ABLE, administered by Maryland 529
• 2026 contribution limit: $20,000 per year from all sources; maximum account balance $500,000
• Maryland tax benefit: Subtract up to $2,500 in contributions per contributor, per account, from Maryland taxable income ($5,000 for joint filers), with a 10-year carryforward for excess contributions
• Medicaid recovery protection: Maryland law bars state agencies from claiming ABLE funds after the account owner's death unless federal law requires it
• New in 2026: Eligibility expanded to disabilities beginning before age 46

What an ABLE account is

An ABLE account is a federally authorized, tax-advantaged account for people whose disability began early in life. Growth is tax-free, qualified withdrawals are tax-free, and up to $100,000 is ignored by SSI's asset test — solving the $2,000 resource limit problem that otherwise makes saving in a disabled child's name self-defeating.

A childhood autism diagnosis meets the age-of-onset rule. Your child qualifies through SSI/SSDI or a physician's certification, self-certified at enrollment. One ABLE account per person, nationwide.

What you can pay for

Qualified disability expenses are anything supporting health, independence, or quality of life: uncovered therapy costs, AAC and assistive technology, tutoring and education, housing and rent, transportation, sensory tools, personal support services, respite care, and legal or financial fees. Maryland ABLE also offers a prepaid debit card option that tracks qualified expenses, which many parents find easier than saving receipts manually — though you should still keep documentation in case the IRS asks.

Maryland's tax subtraction

Each contributor can subtract up to $2,500 of contributions per ABLE account from their Maryland taxable income each year ($5,000 for a married couple filing jointly). "Per contributor" matters: if you, your spouse (filing jointly), and two grandparents each contribute, each taxpayer claims their own subtraction on their Maryland return. Contribute more than the cap in one year and the excess carries forward for up to 10 years of future subtractions.

Beyond the subtraction, account growth is tax-free and qualified withdrawals are free of both federal and Maryland tax.

How to open an account

1. Enroll online at marylandable.org (paper and in-person enrollment are also available)
2. Have your child's Social Security number and disability basis ready — SSI/SSDI or a physician's certification
3. Make the minimum opening deposit (as little as $5)
4. Choose investments — options include an FDIC-insured cash choice and Vanguard-managed portfolios
5. Expect a modest annual account fee (around $35, billed quarterly)

Parents can manage the account as the Authorized Legal Representative for a minor or for an adult child who needs support.

Protecting SSI and Medicaid

The first $100,000 is fully disregarded for SSI; above that, SSI is suspended (not terminated) until the balance drops. Medicaid eligibility is unaffected at any balance. Maryland's standout protection comes at the end of life: state law prohibits Maryland agencies from seeking repayment out of ABLE funds unless federal law requires it, so remaining money passes to the estate or a successor beneficiary. This makes Maryland's plan unusually strong for long-term planning — worth confirming current rules with a special needs attorney.

ABLE account vs. special needs trust

Use the ABLE account for accessible, low-cost, day-to-day disability spending (it's also the only clean way to pay housing costs without reducing SSI). Use a special needs trust for larger assets like inheritances, which exceed ABLE's $20,000/year contribution cap. They work well together — a trust can distribute into the ABLE account.

FAQ

Do we have to use Maryland's plan? No, most states' plans accept Maryland residents — but only Maryland ABLE contributions qualify for the Maryland tax subtraction, and Maryland's Medicaid recovery protection applies to its own plan.

Can we roll over a 529 college account? Yes, permanently allowed within the annual contribution limit.

Is there a debit card? Yes — Maryland ABLE offers a prepaid card (small monthly fee) that gives easy access to funds and tracks qualified expenses.

General information, not tax or legal advice. Confirm current details at marylandable.org.

Related guides

• Autism rights and advocacy
• IEPs for autism
• Autism scholarships
• Pennsylvania ABLE account
• New Jersey ABLE account
• ABLE accounts: the complete guide