ABLE accounts have contribution limits that are set by federal law and your specific ABLE program. These limits are important because exceeding them can cause contributions to be rejected or returned.
Standard vs. ABLE to Work Contributions and Annual Limits
Each year, there is a maximum total amount that can be contributed to an ABLE account from all sources combined.
This standard annual limit is set by federal law and can change over time. It covers all contributions to the ABLE account, including:
- Contributions from the account owner
- Contributions from an ALR
- Gifts from friends, family, or others
- Rollovers from 529 plans
The annual contribution limit for beneficiaries who are not working is $20,000 per ABLE account. (Note: the limit is not per contributor.) These are known as Standard Contributions.
Working beneficiaries may have a higher limit. If the beneficiary is working and not participating in a workplace retirement plan this year, they can make additional “ABLE to Work” contributions. On top of the $20,000 limit, eligible working beneficiaries may contribute up to:
- $15,650 (for residents of the 48 contiguous states and Washington D.C.)
- $19,550 (for residents of Alaska)
- $17,990 (for residents of Hawaii)
Important to Know:
- “ABLE to Work” contributions can’t exceed the beneficiary’s gross income for the year. For example, if a beneficiary makes $5,000 a year, the most they can save as an “ABLE to Work” contribution is $5,000.
- If the beneficiary or their employer is contributing to a defined contribution plan (401k), annuity plan (403b), or deferred compensation plan (457b) during the same calendar year, the beneficiary is not eligible to make ABLE to Work contributions.
- Both the Standard and ABLE to Work contribution limits may change every year.
Maximum Account Balance for Contributions
Your ABLE account has a maximum account balance for contributions (also sometimes called a lifetime account limit). No contributions can be made (except certain rollovers) if your account balance exceeds this limit.
The lifetime maximum for a STABLE account balance is $570,000. Once an account hits that maximum balance, no new contributions are accepted, but the account can remain open and continue to grow with investment earnings.
Limits May Increase
Both the annual contribution limits and maximum balance limits can increase over time.
The standard annual ABLE contribution limit is tied to a federal amount that is often adjusted for inflation. ABLE to Work limits may also change when:
- Poverty‑line figures are updated,
- Federal rules are revised, or
- Some states update maximum balance limits for their ABLE programs periodically.
Because of this, do not assume last year’s limits are still current, and always check your Plan Disclosure Booklet for the most current amounts.