The Palmetto ABLE Account: A Parent's Guide

Palmetto ABLE — South Carolina's ABLE program on the STABLE platform — lets families of autistic children build savings the SSI resource limit can't punish, with the STABLE debit card's spending controls built in.

Confirm current details at palmettoable.com before enrolling.

Quick facts

• Program: Palmetto ABLE, offered by the South Carolina State Treasurer in partnership with Ohio's STABLE program
• 2026 contribution limit: $20,000 per year from all sources combined
• South Carolina tax benefit: South Carolina allows a deduction for Palmetto ABLE contributions — its 529 deduction is famously uncapped; confirm current ABLE treatment and limits with your tax preparer
• SSI protection: First $100,000 excluded from SSI's resource limit; SC Medicaid (Healthy Connections) unaffected at any balance
• New in 2026: Eligibility expanded to anyone whose disability began before age 46

How ABLE accounts work

An ABLE account is a federally authorized savings and investment account for people whose disability began early in life. A childhood autism diagnosis meets the age-of-onset requirement; eligibility comes through SSI/SSDI or a physician's disability certification, self-certified at enrollment. Earnings grow tax-free, qualified withdrawals are tax-free, and the balance stays off the books for means-tested benefits. One account per person; anyone can contribute. Full background in our complete ABLE accounts guide.

What you can pay for

Anything supporting health, independence, or quality of life: uncovered therapy costs, AAC devices and assistive technology, education and tutoring, housing and rent, transportation, sensory equipment, personal support services, respite care, and legal or financial fees. Non-qualified withdrawals cost tax plus a 10% penalty on earnings, so keep records — the STABLE card's automatic transaction log helps.

South Carolina taxes

South Carolina is one of the most generous deduction states for savings plans — its 529 deduction is uncapped — and a deduction is available for Palmetto ABLE contributions as well; confirm the current treatment and any limits with your tax preparer before filing. Beyond that: tax-free growth, tax-free qualified withdrawals, and potential federal Saver's Credit eligibility for a working adult account owner.

How to open an account

1. Enroll online at palmettoable.com — minimum opening deposit around $25
2. Self-certify eligibility (SSI/SSDI or physician certification, onset before age 46)
3. Choose investments — Vanguard-based options plus an FDIC-insured savings option
4. Order the STABLE card and set up automatic contributions

Parents and guardians can open and manage the account for a minor or an adult child who needs support.

Protecting SSI and Medicaid

Up to $100,000 is fully disregarded for SSI; above that, SSI is suspended — not terminated — until the balance falls back below the line. Healthy Connections Medicaid, including waiver services, is unaffected at any balance.

FAQ

ABLE account or special needs trust? Usually both — the ABLE account for day-to-day disability spending including housing, a trust for large assets. The trust can distribute into the ABLE account.

Can we roll over a Future Scholar 529? Yes, 529-to-ABLE rollovers are permanently allowed within the annual limit; ask about deduction recapture first.

General information, not tax or legal advice. Confirm current details at palmettoable.com.

Related guides

• ABLE accounts: the complete guide
• North Carolina ABLE account
• Autism rights and advocacy