can you buy clothes with an able account

can you buy clothes with an able account

Can You Buy Clothes with an ABLE Account?

ABLE accounts are tax-advantaged savings accounts that allow individuals with disabilities to save for their future. To protect individuals with disabilities from the loss of government benefits, those who are eligible for these accounts are limited in what they can use the money in the account for. But, can you buy clothes with an ABLE account?

What is an ABLE Account?

An ABLE account is a savings plan that’s designed to supplement, not replace, benefits you may be receiving from programs like Medicaid or SSI. It enables someone with a disability that occurred before age 26 to save without losing access to those benefits. ABLE accounts are a great way to save up to $15,000 a year without affecting those government benefits.

What Can You Use the Money for?

ABLE accounts can be used for Important Qualified Disability Expenses (QDEs). These QDEs are things that are related to the beneficiary’s disability and are necessary to improve their health or quality of life. Some examples of QDEs include:

  • Housing – rent, mortgage, or home modifications
  • Transportation – public transit, vehicle expenses, or adaptive equipment
  • Education – tuition, tutoring, computer and adaptive technology, or specialized therapies
  • Work Expenses – job search, job training, and career support services

You can visit USABLE Direct for a complete list of QDEs.

Can You Buy Clothes with an ABLE Account?

Unfortunately, clothes are not considered a QDE and are not an eligible expense. The only exception would be if the clothes were a necessity due to the beneficiary’s disability. For example, you could buy adaptive clothing if it was used to assist with movement.

Overall, ABLE accounts are an invaluable tool to help individuals with disabilities save and pay for important expenses related to their disability. Although you cannot buy clothes with an ABLE account, there are other safe and secure ways of saving funds.

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