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Frequently Asked Questions

Questions about the different ways you can contribute to your ABLE account.

Contributions to an Account cannot exceed $20,000 per year (2026). This amount is tied to the federal annual gift tax exclusion limit and may adjust periodically to account for inflation. Contributions generally can be made from any source. If the Account Owner is working, and they do not participate in an employer-sponsored retirement program, they may contribute more to the Account. See the next question for additional details.

For SSI beneficiaries, up to $100,000 can be saved in an ABLE Account without affecting their monthly cash benefit. For more information, go to https://secure.ssa.gov/poms.nsf/lnx/0501130740. Total Account balances are limited to $500,000. No new contributions may be accepted into an LA ABLE account once the Account balance reaches $500,000.

Yes. If the Account Owner is working, has earned income, and does not participate in an employer-sponsored retirement plan, then an additional amount equal to the lesser of the following generally may be contributed to the Account in a selected calendar year:

  • Account Owner’s earned income for the calendar year, or
  • U.S. Department of Health and Human Services Poverty Guidelines amount for a one-person household in the Account Owner’s state of residence (U.S. Department of Health and Human Services Poverty Guidelines change annually).

Contributions come from any source: the Account Owner, family, friends, inheritances, fund-raisers, insurance settlements, crowd funding, and third parties. Ugift ABLE is an easy way for third parties to make gift contributions directly into the Account.

Ugift® is a feature of your ABLE Account that allows friends and family to contribute to your savings in lieu of traditional gifts. It is simple to use – just log in to your Account to find your code and share it with friends and family, who can use it at UgiftABLE.com to contribute directly into your Account. Learn more by reading our Ugift ABLE FAQ.

For tax years beginning on or after January 1, 2026, Account Owners filing a single return are entitled to an exemption from Louisiana state taxable income for amounts deposited in an ABLE account up to a maximum of $2,400 per beneficiary per taxable year. If an Account Owner does not use the full $2,400 exemption in any tax year, any unused exemption shall be rolled forward to be used in future tax years and shall not be included in the Account Owner’s Louisiana state taxable income in the year actually deposited. 

For tax years beginning on or after January 1, 2026, Account Owners filing joint returns are entitled to an exemption from Louisiana state taxable income for amounts deposited in an ABLE account up to a maximum of $4,800 per beneficiary per taxable year. If Account Owners filing jointly do not use the full $4,800 exemption in any tax year, any unused exemption shall be rolled forward to be used in future tax years and shall not be included in the Account Owner’s Louisiana state taxable income in the year actually deposited.

Yes. A rollover from a 529 Education Savings Plan into an ABLE Account can be made for the same individual or for a member of the family of the 529 education savings account beneficiary. Amounts contributed to an LA ABLE Account by rollover from a 529 Education Savings Plan are not eligible for purposes of the Louisiana state income tax credit for contributions to an ABLE Account. Rollovers from 529 Education Savings Plan accounts are subject to annual limits (generally equal to the annual ABLE Account contribution limit). Individual circumstances and tax consequences vary, and any person is encouraged to speak with a financial advisor or tax professional when considering a rollover from a 529 Education Savings Plan.

Yes. Depending on your adjusted gross income, the amount of the Saver’s Credit can be 50%, 20%, or 10% of contributions made to an ABLE Account of which you are the designated beneficiary. Rollover contributions do not qualify for this credit. The maximum contribution amount that may qualify for the credit is $2,000 ($4,000 if married filing jointly), making the maximum credit $1,000 ($2,000 if married filing jointly). See Form 8880, Credit for Qualified Retirement Savings Contributions, for more information.

No, an ABLE account does not shield income for benefit-eligibility. There is no change in the way the income of the ABLE Account Owner is counted by means-tested benefit programs. Employment earnings are still counted as earned income or in terms of substantial gainful activity (SGA) and are taken into consideration when determining eligibility for certain public benefits.

These are contributions of a specific amount made automatically into an account on a custom frequency basis. For example, you can set up recurring contributions of $25 per month. This makes the process of saving very simple.