Oregon ABLE Savings Plan
Save and invest for the future without losing access to SSI, Medicaid, or other need-based benefits. A guide for Oregon residents and families navigating disability planning. For qualified Oregon residents only. The figures on this page reflect 2026 plan year limits.
*Updated on 05/08/2026
Please visit Oregonablesavings.com for the most up-to-date information.
Oregon ABLE Plan basics
What an ABLE account is, who qualifies in 2026, and how it protects access to SSI and Medicaid.
What is an Oregon ABLE Savings Plan?
Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts designed for individuals with disabilities, allowing them to save money without jeopardizing eligibility for need-based benefits like Supplemental Security Income (SSI) and Medicaid.
When an individual with special needs applies for disability benefits, they must show that they do not have enough money to support themselves independently. Money held in traditional bank accounts will count against the ability to qualify for these disability benefits. Normally, having more than $2,000 in personal countable resources can disqualify someone from these programs (the SSI individual resource limit has been $2,000 since 1989 and remains in effect for 2026).
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Due to this, people with disabilities may not be able to build savings with the money they earn or that they receive through inheritance or gifts.
This means that people with disabilities may live with very little money if they want to receive government aid.
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ABLE accounts can help cover this gap by giving individuals with special needs the opportunity to manage a modest bank account, while not penalizing their eligibility for SSI, Medicaid, or other government benefits.​​
Oregon Residents may qualify for up to a $380 Tax Credit for making contributions to this account in 2026
Who is Eligible for an Oregon ABLE Savings Plan
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To be eligible for an Oregon ABLE Savings Plan (www.oregonablesavings.com) you must:
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1. Be an Oregon Resident (out-of-state residents the ABLE for All plan applies).​
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2. Have been diagnosed with a disability before age 46.
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3. Be eligible to receive benefits under Supplemental Security Income (SSI) and/or Social Security Disability Insurance (SSDI).*
*Individuals who are not receiving SSI and/or SSDI may still be eligible if they meet the age requirement and have been diagnosed by a licensed physician and received a letter of certification.​
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Additional Rules:
The account owner can be the beneficiary themselves or an authorized representative if the person is a minor or cannot manage the account.
Only one ABLE account is allowed per beneficiary nationwide.​
2026 ABLE eligibility expansion
Effective January 1, 2026, ABLE eligibility expanded: individuals whose disability began before age 46 now qualify, up from the previous age-26 threshold. The change was enacted as part of federal tax legislation passed in 2025 and was paired with other provisions affecting ABLE accounts. (SSA)
2026 Limits, Tax Credit, and Eligible Expenses
Contribution caps, the Oregon refundable tax credit, and what counts as a qualified disability expense.
The 6 Key Benefits of Oregon ABLE Savings Plans
The Oregon ABLE Savings Plan is designed to be a "qualified ABLE program", which permits a beneficiary of an ABLE to make tax-free withdrawals to pay for qualified disability expenses under certain circumstances (www.oregonablesavings.com). ​​​​​​​
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1. Money in an ABLE account (up to $100,000) does not count toward SSI resource limits or Medicaid eligibility.
For example, SSI will ignore up to $100,000 in an ABLE account – any balance above $100K merely suspends SSI cash benefits until the balance falls back under the threshold, but Medicaid and other benefits continue uninterrupted
​2. Tax-free growth of investments.
As your investments grow and are traded within an ABLE account, there are no tax consequences, earnings aren’t taxed unless the money is withdrawn for non-qualified expenses.​3. Tax-free withdrawals when used for qualified disability expensesYou can withdraw money from an ABLE account tax-free as long as it’s used for qualified disability expenses like housing, transportation, education, personal support services, assistive technology, and basic living costs.
3. Tax-free withdrawals when used for qualified disability expenses
You can withdraw money from an ABLE account tax-free as long as it’s used for qualified disability expenses like housing, transportation, education, personal support services, assistive technology, and basic living costs.
​​​​​4. Contributions may qualify for Saver's Credits.
Contributions made by the designated beneficiary to an ABLE account may qualify them to claim the federal Saver’s Credit, worth up to 50%, 20%, or 10% of eligible contributions (up to $1,000 annually, or $2,000 if married filing jointly), depending on their income and filing status (irs.gov).
5. Beneficiary Control
Unlike a special needs trust, an ABLE account is owned directly by the person with disabilities, who can control the funds and spend on eligible needs via a debit card or online withdrawals. This may give the beneficiary greater autonomy to manage everyday expenses. Oregon’s plan even offers a prepaid VISA debit card option, so the beneficiary can easily spend ABLE funds on everyday needs like groceries or rent.
6. Oregon State Income Tax Credit for Contributions*
Oregon offers a refundable state income tax credit to encourage saving in ABLE accounts. Oregon residents can claim up to $190 (single filers) or $380 (joint filers) each year for contributions to an Oregon ABLE account.
The credit amount is based on contribution and income level. Lower-income contributors receive a credit equal to a higher percentage of their contribution, while higher-income filers receive a smaller percentage. For example, a single filer with adjusted gross income between $30,001 and $70,000 falls in the 50% bracket and would need to contribute $380 to receive the maximum $190 credit. A married couple in the same bracket would maximize their $380 joint credit by contributing $760.
Because the credit is refundable, the full amount applies even if the filer owes little or no Oregon state tax.​​
2026 Oregon ABLE plan limits and key details
​​​​​2026 Account limit:
$400,000
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$100,000 SSI exclusion threshold.
Balances up to $100,000 are excluded from the SSI $2,000 resource limit. Balances above $100,000 suspend SSI cash benefits until the account drops back below the threshold; Medicaid and other benefits continue. (www.oregonablesavings.com)
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2026 Annual contribution limit:
$20,000*
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ABLE to Work
The limit for additional ABLE to Work contributions in 2026 is up to $15,650 or the total of their wages, whichever is less. *Not eligible if you or your employer are contributing towards a qualified retirement plan.
Read more here.
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State tax deduction/credit for contribution:
Other Important Details on Oregon Able Savings Plans
Data is from Oregonablesavings.com, please visit their site for the most up-to-date info.
Open to out-of-state residents: No
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Minimum amount to open an account: $25
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Debit or prepaid card available: Yes
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Investment options: Three investment options with varying risk
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Annual maintenance fees: $35 annually
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Annual account balance fees: Depends on the investment option selected. The total asset-based fees range from 0.30% - 0.34%
Oregon- Special Needs Trusts
ABLE accounts are complementary to Special Needs Trusts (SNTs), each has its role in special needs planning. In fact, Oregon’s official guidance notes that an ABLE account won’t replace a special needs trust or a pooled trust; the best approach depends on individual circumstances (oregonablesavings.com).
Many families use both tools in tandem: a special needs trust (established via legal documents) can hold larger sums like inheritances or lawsuit settlements, while the ABLE account gives the person with disabilities accessible funds for day-to-day needs and a way to save earnings or gifts under their own control.
Below, we summarize the key differences between Oregon ABLE accounts and Special Needs Trusts in terms of cost, control, limitations, and benefits:
Key differences between ABLE accounts and Special Needs Trusts
As the comparison above shows, an ABLE account is inexpensive and easy to set up (no lawyer needed, you can open an account online in minutes) and has low ongoing fees. The funds in an ABLE are owned by the beneficiary, who can spend on a wide range of needs without prior approval. However, ABLE accounts have contribution limits (currently $20,000 per year and around $400,000 total in Oregon) and age-of-onset restrictions (the disability must have begun before age 46). They are best for supplementing daily quality of life, for example, paying for groceries, assistive technology, or rent, and not meant to hold very large sums (oregonablesavings.com).
In contrast, a Special Needs Trust can hold unlimited assets for a person with disabilities with no annual contribution cap. Trusts are not limited by the beneficiary’s age of disability onset. A properly-drafted SNT (whether a first-party trust funded with the beneficiary’s own money, or a third-party trust funded by others) is not counted as the beneficiary’s asset for SSI/Medicaid purposes, so it too preserves benefits. But the trust is managed by a trustee, not the beneficiary, every distribution must be approved, which adds oversight but also less personal control. Trusts can pay for a broad array of supplemental needs, but if a trust pays for food or shelter directly, the beneficiary’s SSI check may be reduced (SSI treats that as in-kind support, (oregonablesavings.com).
Distributions from a trust for the beneficiary’s needs may or may not be taxable to the beneficiary depending on the source (e.g. distributions of trust principal or gifts are not taxed, but distributions of income might pass out taxable income to the beneficiary). Overall, trusts are less tax-efficient and often require professional tax preparation. Cost and complexity are also considerations. Setting up a special needs trust requires hiring an attorney and incurring legal fees, often several hundred dollars to a few thousand, unless you use a pooled trust (oregonablesavings.com). There are typically ongoing trustee fees (a corporate or professional trustee will charge either a flat annual fee or a percentage of assets).
Medicaid payback rules differ as well
A first-party SNT (funded with the beneficiary’s own money, such as an injury settlement) is legally required to reimburse state Medicaid for costs paid during the beneficiary’s lifetime, after the beneficiary’s death.
A third-party SNT (funded by parents or others for the beneficiary) is not subject to Medicaid payback, remaining funds can go to other family members when the beneficiary passes (oregonablesavings.com).
ABLE accounts, could be subject to Medicaid recovery under federal law, but Oregon has barred its Medicaid program from claiming ABLE funds (oregonablesavings.com).
This makes Oregon’s ABLE program especially favorable for families worried that all leftover funds would otherwise go to the state, at least in Oregon, that won’t happen (though if the beneficiary received Medicaid services in another state, that state could potentially assert a claim on the ABLE balance).
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How T. Mann Financial helps with ABLE planning
Coordinating ABLE accounts, Special Needs Trusts, and your broader plan into one approach for your family.
T. Mann Financial's ABLE Calculator
Use our 2026 Oregon ABLE Plan Tax Credit Calculator
To see how much you should contribute for your situation, the calculator will output the Oregon tax credit you could receive based on your filing status and income.
How T. Mann Financial Can Help
At T. Mann Financial, we take a personalized approach to special needs financial planning. We can help you determine whether an ABLE account, a Special Needs Trust, or both are right for your family, and how to fund and integrate them into a broader plan. While we don’t manage ABLE accounts or serve as trustees, we guide clients on funding strategies, optimizing tax credits, and staying within SSI and Medicaid rules. If a Special Needs Trust is needed, we coordinate with estate planning attorneys through our Smart Estate Planning platform to offer flat-rate, attorney-drafted documents. We partner with licensed attorneys and support you through each step.
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Our goal is to help your family build a plan that supports your loved one's long-term needs. We assist with evaluating account options based on your income, assets, age of disability onset, and care needs. We also help with the logistics: opening accounts, setting up automatic contributions, and tracking usage to ensure compliance. Special needs planning can be complex, but you don’t have to do it alone.
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Reach out to T. Mann Financial for a consultation by phone, email, or live chat. We'll walk you through how Oregon ABLE Savings Plans, Special Needs Trusts, and related tools can fit into your family's overall financial picture.