ColoradoABLE: A Savings Option Worth Knowing About

We partner with families every day who are juggling therapy appointments, school supports, medical care—and the big-picture question of “How do I plan for my child’s future?” One helpful tool many Colorado families don’t hear about soon enough is a ColoradoABLE account.

If you’re caring for a family member with a disability, here’s a look at what a ColoradoABLE account is—and why it can make life a little easier.

What Is a ColoradoABLE Account?

A ColoradoABLE (Achieving a Better Life Experience) account is a tax-advantaged savings and investment tool for individuals with disabilities. It allows families to save money without losing eligibility for public benefits like Medicaid or Supplemental Security Income (SSI). These accounts differ from regular savings accounts and are managed by CollegeInvest. They are for people with disabilities that began before age 46 (increased from age 26 as of January 1, 2026), enabling them to pay for qualified disability-related expenses—both now and in the future. While offered by Colorado, these accounts are available to eligible residents in other states as well. 

Why Families Love ColoradoABLE

1. It Protects Essential Benefits

One of the biggest fears parents share with us is saving “too much” and accidentally jeopardizing public benefits.

ColoradoABLE accounts are structured so that savings do not count the same way as other assets when determining eligibility for programs like Medicaid or SSI, up to federally allowed limits. This gives families peace of mind while planning ahead.

2. Funds Can Be Used for Everyday Life

Money in a ColoradoABLE account can be used for a wide range of qualified disability expenses, including:

• Therapies and medical care
• In-home support services
• Adaptive equipment and technology
• Education and job training
• Transportation
• Housing and basic living expenses

In other words: this account supports real life, not just emergencies.

3. Anyone Can Contribute

Parents, grandparents, relatives, and even friends can all contribute to the same account. Many families use ColoradoABLE accounts for:

• Birthday gifts
• Holiday contributions
• Long-term financial planning

It’s an easy way for loved ones to help in a meaningful, practical way.

ColoradoABLE accounts do have annual and lifetime contribution limits, but they’re designed to be flexible for families. Each year, contributions from all sources combined can go up to the federal ABLE limit (which adjusts periodically) but is currently set at $20,000. There is also a higher overall account balance limit set by Colorado, allowing families to save well beyond just short-term needs. The good news is that staying within these limits helps ensure your child continues to qualify for important public benefits like Medicaid and SSI. Many families find the limits more than sufficient for planning, especially when contributions are spread out over time.

4. Potential Tax Advantages

ColoradoABLE accounts offer tax advantages that can help your savings grow over time. While tax benefits vary by individual situation, many families appreciate that these accounts are designed to be financially efficient. Earnings on investments are tax-free at the federal level if used for qualified disability expenses (QDEs).

(We always recommend talking with a financial or tax professional to understand what applies to your family.)

5. It Encourages Independence

As children grow into teens and adults, ColoradoABLE accounts can help them:

• Learn money management skills
• Pay for their own expenses when appropriate
• Build confidence and independence

For many families, this is about more than saving—it’s about dignity, choice, and self-direction.

Who Is Eligible?

In general, individuals whose disability began before age 46 (this age changed from 26 in 2026) may qualify for an ABLE account. If your child receives SSI or SSDI, they likely qualify—but eligibility can also be established in other ways.

If you’re unsure, that’s okay. Many families start with questions, not answers.

How Our Home Health Team Supports Families

We know that financial planning isn’t always top-of-mind when you’re focused on your child’s daily care. Our role is to support the whole family, and that includes sharing resources that can reduce stress and improve long-term stability.

If you’d like help:

• Understanding whether a ColoradoABLE account makes sense for your family
• Finding trusted resources to learn more
• Talking through how this fits into your child’s care plan

We’re always here to help you find the right person to answer your questions.

Planning Ahead, One Step at a Time

You don’t have to figure out the future all at once. A ColoradoABLE account is simply one tool—flexible, family-friendly, and designed to support individuals with disabilities throughout every stage of life.

If you’d like to learn more or talk through your options, reach out to our team. You’re not alone on this journey—and you don’t have to plan it by yourself. 💙

This video from Advocacy Denver may answer some of your questions. Although it is from a few years ago and some of the specific details may have changed, much should be the same and it will give you a starting point for conversations with your financial planner. For more current information, visit the official Colorado ABLE website or you can check out the ABLE National Resource Center website.