For many families, the path to financial security starts with small, steady steps. Certificates of Deposit (CDs) are a low-risk way to safely grow savings with guaranteed returns. And when it comes to supporting individuals with disabilities, that growth can make a meaningful difference — especially when paired with an ABLE account, a tax-advantaged account designed to cover disability-related expenses.
By first growing funds in a CD and then moving them into an ABLE account, families and friends can maximize contributions, stretch dollars further, and create more stability for the future.
What Are ABLE Accounts?
Created just over a decade ago, Achieving a Better Life Experience (ABLE) accounts are tax-free savings accounts that allow people with disabilities to save for qualified expenses without losing eligibility for important government benefits such as Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI).
These accounts can help improve quality of life by covering costs like housing, education, healthcare, or assistive technology.
Who Is Eligible for an ABLE Account?
Currently, ABLE accounts are available to individuals whose disability began before age 26. Starting January 1, 2026, eligibility expands to those whose disability began before age 46.
Friends, family, and even employers can contribute to an ABLE account, making it a community effort to build financial support.
Benefits of ABLE Accounts
- Tax-free growth and withdrawals – Money in the account grows tax-free, and withdrawals remain tax-free as long as they are used for qualified disability expenses.
- Flexibility – Funds can be used at any time, for a wide range of approved expenses.
- No impact on most benefits – Savings won’t reduce eligibility for federally funded programs like SSI (up to certain limits).
Types of ABLE Accounts
There are 49 ABLE plans nationwide, each administered by individual states. Some accounts function like a checking account with debit card access, while others offer a variety of investment options ranging from conservative money market funds to more aggressive growth portfolios.
When choosing a plan, it’s important to weigh the level of risk and consider both short-term needs and long-term savings strategies.
How CDs Can Complement an ABLE Account
While no state ABLE program currently includes CDs as an investment option, that doesn’t mean CDs can’t play a role. Families and supporters can:
- Use CDs to safely grow funds before contributing them to an ABLE account.
- Take advantage of federally insured returns on CDs, ensuring contributions stretch further.
- Align CD terms with contribution timelines, so funds are ready to deposit when it’s time to support a loved one’s ABLE account.
By pairing the predictable earnings of CDs with the tax-free benefits of ABLE accounts, you create a powerful savings strategy that balances safety, growth, and impact.
Final Takeaway
ABLE accounts are a valuable tool for individuals with disabilities and their families, offering tax-free growth and flexibility while preserving essential benefits. Starting with CDs is a smart way to grow contributions safely and ensure that every dollar directed into an ABLE account goes further.
FAQs
Q: Can friends or family contribute to an ABLE account?
Yes. Contributions can come from the individual, family, friends, or even employers — up to annual contribution limits.
Q: Are ABLE accounts offered in every state?
Yes, but plan features vary. The ABLE National Resource Center provides a state comparison tool to evaluate options.
Q: Why use CDs if they aren’t part of ABLE plans?
Because CDs allow you to maximize safe growth before contributing, ensuring more funds are available for qualified expenses.
