Thomas P. DiNapoli,
State Comptroller

Woman standing at her kitchen stove, her back is to the camera. She has a full prosthetic left leg. She is wearing a black short-sleeved shirt and jean shorts. The tidy kitchen has black counters, white cabinets and white wall tiles.

What are qualified disability expenses?

They could be costs you incur many times a day, once a month, or once in a lifetime. Qualified disability expenses are those that:

  • Are incurred at a time when the Account Owner is an Eligible Individual
  • Relate to the blindness or disability of the Account Owner, and
  • Are for the benefit of the Account Owner in maintaining or improving his or her health, independence, or quality of life.
List of Qualified Disability Expenses
  • Education
  • Housing
  • Transportation
  • Employment training and support
  • Assistive technology and related services
  • Personal support services
  • Health
  • Prevention and wellness
  • Financial management and administrative services
  • Legal fees
  • Expenses for ABLE account oversight and monitoring
  • Funeral and burial

ABLE account holders should maintain copies of receipts for all purchases and fees when using money from their ABLE accounts.

What if you use your savings for non-qualified expenses?

In that case, the earnings portion of the withdrawal will be treated as income, and will be subject to federal and applicable state taxes. You will also be subject to a 10% federal tax penalty.