---
title: Legal & Financial Planning — ABLE Accounts
scope: TODO_SCOPE
covers:
- able
- '529'
- ssi
not_covered: []
sources:
- 20230219_Casey_Connealy_Estate_Planning
- 20250921_Assured_Trust_Legal_Tools
- 20240128_Lindsay_Krumbholz_Golden_Scoop
- 20260315_Sarah_Otto_Case_Management
- 20260517_Tom_Treacy_ABLE
- 20260719_Tyler_Davidson_Financial_Picture
last_updated: '2026-07-19'
token_estimate: 2977
parent: https://fwmparents.org/resources/legal-financial-planning/index.md
---

# Legal & Financial Planning — ABLE Accounts

- [Contact Casey Connealy](https://www.midwestestateplan.com/contact-us/) — *[Casey Connealy, Feb 2023](https://fwmparents.org/sessions/20230219_Casey_Connealy_Estate_Planning/notes.md)*

- [ABLE Savings Plan](https://savewithable.com/ks/home.html) — *[Casey Connealy, Feb 2023](https://fwmparents.org/sessions/20230219_Casey_Connealy_Estate_Planning/notes.md)*

- Created in 2014; it's a 529 (Section 529 of Tax Code) — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- Purpose: **"checking account"** for regular expenses of an adult with special needs — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*
    - NOT a store of value (100K cap) — NOT a replacement for a special needs trust
    - Needed because SSI recipients cannot have more than $2K in checking, but CAN have money in ABLE
    - At death, residual ABLE balances may revert to the state

- You can convert a 529 to an ABLE account — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- Uses: Education, training, disability-related living expenses, technology, transportation — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- If you have more than $100K, your SSI will be suspended — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- Annual contribution cap: ~$19,000/year (tied to federal gift tax limits) — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- [Open a Kansas ABLE account](https://www.kansasstatetreasurer.ks.gov/able_savings.html) — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- **Secure Act 2.0 (2024):** Qualifying disability age raised from 26 to 46 — *[Assured Trust, Sep 2025](https://fwmparents.org/sessions/20250921_Assured_Trust_Legal_Tools/notes.md)*

- In order for adults with developmental disabilities to retain access to social security they have to make less than a threshold amount per year. Employers can contribute instead to their employee's ABLE account which is not counted toward that requirement. — *[Lindsay Krumbholz, Jan 2024](https://fwmparents.org/sessions/20240128_Lindsay_Krumbholz_Golden_Scoop/notes.md)*

- [Kansas ABLE Savings Plan](https://savewithable.com/ks/home.html) allows tax-advantaged savings without affecting Medicaid eligibility — important financial planning tool for families of individuals with IDD — *[Sarah Otto, Mar 2026](https://fwmparents.org/sessions/20260315_Sarah_Otto_Case_Management/notes.md)*

- **Eligibility:** symptoms of qualifying disability must first appear **before age 46** (raised from 26 as of January 2026 under the ABLE Age Adjustment Act) AND severity must be SSI/SSDI-eligible OR documented by a doctor — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Annual contribution limit:** $20,000 aggregate (decoupled from the federal gift-tax limit in 2026); $550,000 lifetime cap in Kansas — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **ABLE to Work:** an employed beneficiary can add up to $15,650 of earned income on top of the $20K — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **$100K SSI threshold:** ABLE balances up to $100,000 don't affect SSI; above $100K, SSI is *suspended* but only the excess counts. Medicaid is **unlimited** — you can have any ABLE balance and keep Medicaid (just lose the SSI check) — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Kansas Medicaid clawback** only applies if the beneficiary passes after **age 55** (2018 KS law). Federal legislation is pending that would eliminate clawback nationally — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Kansas state tax deduction:** up to $3,000 single / $6,000 joint per year on contributions to an ABLE (or 529) — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Qualified Disability Expenses (QDEs):** If you can make the case that an expense adds to the beneficiary's well-being or enhances their life, it's qualified. Includes housing, transportation, education, job coaching, assistive technology, health & wellness, basic living expenses, vacations, and non-family caregivers. No prior approval needed; keep documentation — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Two-account spending strategy:** keep a local bank account below $2,000 and use ABLE for recurring bills (cell phone, insurance, rent) and big-ticket items (vehicles). Many families keep small day-to-day purchases on a local account to simplify recordkeeping — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Property bought with ABLE never counts as a means-tested asset** — some families build ABLE balances with a future home purchase in mind — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Non-qualified withdrawals:** tax on earnings only + 10% federal penalty on earnings only (principal untaxed). SNT growth is taxed at trust tax rates when distributed — consult a tax advisor — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Pair SNT with ABLE:** An SNT can fund an ABLE account up to the annual contribution limit. Talk to an estate attorney about how to structure this so the trust language tracks future limit increases. Money held in ABLE 5+ years comes out tax-free — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Account features:** FDIC-insured checking option (debit card, unlimited checks) + 7 investment options (aggressive → money market). Only 2 reallocations per calendar year. Fees: ~$26/yr all-in for KS resident with paperless; ~30 bps on the aggressive investment option — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Authorized Individuals:** parents, POAs, conservators, grandparents (be prepared to document the family relationship chain). If you have a choice between opening as Parent, Guardian, or Conservator, check with the Treasurer's office about which role applies to your situation — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Cross-state:** Kansas is a "tax parity" state — KS residents get the deduction for contributing to *any* state's ABLE plan. Beneficiaries can live in any state — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **529 ↔ ABLE strategy:** There is a strategy where opening a 529 for your child might make sense before opening an ABLE account. Contact your financial advisor to discuss the investment benefits of growing savings in a 529 vs. an ABLE account — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Gifting platform:** [UgiftABLE.com](https://www.ugiftable.com/) — campaign codes for graduation, birthdays, fundraising drives — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Newborn illustration (not a projection):** A $100 Empowerment Grant plus $50/paycheck contributions, assuming a hypothetical 6% annual return over 18 years, would compound to roughly $84,000. Actual returns vary — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **$100 Kansas ABLE Empowerment Grant:** apply at [KansasCash.ks.gov/grant](https://www.kansascash.ks.gov/grant), attend an in-person or virtual class, and open a Kansas ABLE account by **July 1, 2026**. Paid on the 15th of the following month — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- [Open a Kansas ABLE account (enrollment)](https://ks.savewithable.com/ksabletpl/uii529enroll/gettingStarted.do) — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- [Required documents to open an account (Grandparent / Sibling / Parent / Legal Guardian / Conservator)](https://www.kansasstatetreasurer.ks.gov/able_savings_account.html) — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- [Virtual ABLE class registration (May 2026 schedule)](https://www.kansasstatetreasurer.ks.gov/assets/Files/ABLE_Zoom_Registration_Links_May26.pdf) — *[Tom Treacy, May 2026](https://fwmparents.org/sessions/20260517_Tom_Treacy_ABLE/notes.md)*

- **Ownership:** the individual with the disability owns the account, but unlike UGMA/UTMA accounts they do NOT automatically take control at 18 — a parent can remain the authorized co-signer — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- **Housing / rent strategy:** someone on SSI living rent-free with parents loses 1/3 of SSI (In-Kind Support & Maintenance); ABLE-paid housing is *not* ISM, so a rental agreement (~$400/month) paid from the child's ABLE account restores full SSI. The rent is taxable income to the parents — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- A third-party SNT *cannot* pay housing without the 1/3 reduction, so one legitimate (but technical) approach is **rent-recycling**: charge rent, move money from the SNT into the ABLE account, pay the rent from ABLE. Set it up with your attorney and benefits specialist — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- **Missouri clawback:** unlike Kansas, Missouri DOES claw back Medicaid payments dating to when the ABLE account was opened — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

- **At the owner's death:** the account must be closed (a taxable event on the deferred growth) unless a **sibling with a disability** inherits it — list a beneficiary; remaining funds can still cover final qualified expenses — *[Tyler Davidson, Jul 2026](https://fwmparents.org/sessions/20260719_Tyler_Davidson_Financial_Picture/notes.md)*

---

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