The Texas ABLE Account: A Parent's Guide

If your autistic child receives SSI, you already know the cruel math: save more than $2,000 in their name and benefits stop. The Texas ABLE program exists to break that trap. It lets Texas families build real savings for a child with a disability — for therapy, housing, technology, education — without those savings counting against SSI or Medicaid.

Here's how Texas ABLE works in 2026 and how to decide if it fits your family. Confirm current program details at texasable.org before enrolling.

Quick facts

• Program: Texas ABLE, run by the Texas Comptroller's office — open to Texas residents
• 2026 contribution limit: $20,000 per year from all sources combined
• SSI protection: The first $100,000 doesn't count toward SSI's $2,000 resource limit; Medicaid is unaffected at any balance
• Texas taxes: No state income tax, so the account's advantages are entirely federal — tax-free growth and tax-free qualified withdrawals
• New in 2026: Eligibility now includes anyone whose disability began before age 46 (previously 26)

What an ABLE account is

An ABLE account is a savings and investment account authorized by federal law specifically for people with early-onset disabilities. Earnings grow tax-free, withdrawals for qualified disability expenses are tax-free, and — the headline feature — the money is largely ignored by the means tests for SSI and Medicaid.

A child diagnosed with autism qualifies easily on the age-of-onset requirement. Eligibility comes either from receiving SSI/SSDI or from a physician-signed disability certification, which you self-certify during enrollment. One account per person; anyone can contribute to it.

What you can pay for

Qualified disability expenses cover anything that helps maintain or improve your child's health, independence, or quality of life:

• Therapies and out-of-pocket treatment costs
• Assistive technology, AAC devices, sensory equipment
• Education, tutoring, and specialized programs
• Housing and rent — notably, ABLE funds can pay housing costs without triggering the SSI reductions that normally come with housing help
• Transportation, including vehicle modifications
• Personal support services, respite, legal and financial fees

Keep receipts: non-qualified withdrawals cost income tax plus a 10% penalty on earnings.

Texas taxes and your ABLE account

Texas has no state income tax, so there's no state deduction to claim — and nothing to miss out on. The value is all federal: money invested in the account compounds without capital gains or income tax, and qualified withdrawals are never taxed. Contributors may also help your child qualify for the federal Saver's Credit once they're working adults contributing to their own account.

One Texas-specific note: Texas ABLE is limited to Texas residents. If you ever move out of state, you can keep the account or roll it to another state's program.

How to open an account

1. Enroll online at texasable.org with your child's Social Security number
2. Self-certify disability (SSI/SSDI or physician certification, onset before age 46)
3. Make the minimum opening contribution and choose from the plan's investment options, which include an FDIC-insured savings choice
4. Turn on automatic monthly contributions — consistency matters more than size

A parent or legal guardian can open and manage the account as the Authorized Legal Representative for a minor or an adult child who needs support managing it.

Protecting SSI and Medicaid

Up to $100,000 in the ABLE account is disregarded entirely for SSI. If the balance exceeds $100,000, SSI payments pause until it drops below the line — they are suspended, never terminated, and Medicaid continues regardless of the balance. For Texas families using Medicaid waiver services, ABLE savings don't count against those asset tests either.

ABLE account vs. special needs trust

They solve different problems. ABLE: cheap, fast, parent-manageable, perfect for ongoing disability expenses — but capped at $20,000/year going in. Special needs trust: no funding cap and durable control, ideal for inheritances or settlements — but with setup and administration costs. Many Texas families run both: the trust holds large assets and feeds the ABLE account, which handles month-to-month spending, especially housing.

FAQ

Can grandparents contribute? Yes — anyone can, as long as total contributions from everyone stay within $20,000 for 2026.

Can we roll over a 529 college plan? Yes, 529-to-ABLE rollovers are permanently allowed within the annual limit — helpful if you saved for college before the diagnosis changed your planning.

What if my child works someday? Through ABLE to Work, an employed account owner without a workplace retirement plan can contribute up to $15,650 above the annual cap (2026 figure).

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

Related guides

• Autism rights and advocacy
• Your first 100 days after diagnosis
• Autism therapy options
• Florida ABLE account (ABLE United)
• Illinois ABLE account
• ABLE accounts: the complete guide