The ABLE TN Account: A Parent's Guide

If your autistic child receives SSI or TennCare, the $2,000 resource limit makes ordinary saving in their name self-defeating. ABLE TN, run by the Tennessee Department of Treasury, fixes that: a tax-advantaged account whose balance stays invisible to those asset tests.

Confirm current details at abletn.gov before enrolling.

Quick facts

• Program: ABLE TN, Tennessee Department of Treasury
• 2026 contribution limit: $20,000 per year from all sources combined
• SSI protection: First $100,000 excluded from SSI's resource limit; TennCare unaffected at any balance
• Tennessee taxes: No state income tax — the benefits are federal (tax-free growth and withdrawals)
• 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 — parents, grandparents, even a special needs trust. For the full picture, see our complete ABLE accounts guide.

What you can pay for

Anything that maintains or improves 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. Housing is the standout — ABLE funds can pay rent without the SSI reductions that normally follow housing help. Keep receipts; non-qualified withdrawals cost tax plus a 10% penalty on earnings.

Tennessee taxes

Tennessee has no state income tax, so there's no deduction to claim or miss. The value is federal: tax-free compounding, tax-free qualified withdrawals, and potential Saver's Credit eligibility for a working adult account owner. With no in-state tax hook, Tennessee families can also comparison-shop plans nationally — but ABLE TN is purpose-built, low-cost, and keeps everything in-state.

How to open an account

1. Enroll online at abletn.gov with your child's Social Security number
2. Self-certify eligibility (SSI/SSDI or physician certification, onset before age 46)
3. Make an opening deposit and choose from the plan's investment options
4. Set up automatic monthly contributions

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

Protecting SSI and TennCare

Up to $100,000 is fully disregarded for SSI; above that, SSI is suspended — not terminated — until the balance drops back below the line. TennCare, including Katie Beckett and waiver services, is unaffected at any balance.

FAQ

ABLE account or special needs trust? Both, usually — the ABLE account for day-to-day disability spending (including housing), a trust for large assets like inheritances. The trust can distribute into the ABLE account.

Can we roll over a TNStars 529? Yes, 529-to-ABLE rollovers are permanently allowed within the annual limit.

General information, not tax or legal advice. Confirm current details at abletn.gov.

Related guides

• ABLE accounts: the complete guide
• Autism rights and advocacy
• Your first 100 days after diagnosis