An ABLE account is a type of savings and investment account that works like a 529 college savings plan: Contributions grow tax-free, and withdrawals must be for qualified expenses.
The money in an ABLE account can be used for a wide range of things, such as education, housing, transportation, health, wellness and a dozen other categories.
For example, “horseback riding lessons can be calming for children with autism” and may count as a qualified withdrawal from an ABLE account, says Mary Morris, CEO of Virginia529, which administers the ABLEnow savings program. Other distributions may include transportation such as Uber or Lyft rides and assistive technology such as tablets or laptops.
Read more about ABLE accounts in this article published by NerdWallet in October 2021.