Paul Safarik, 32, of Lincoln, Nebraska, has been working in the food industry since he was 21 years old and offers quick service restaurants, including keeping canes and groceries in stores like Trader Joe. With Down Syndrome revenue, I recently bought a treadmill to stay active in bad weather, helping to cover the costs of dental braces.
It’s rare, economically speaking, partly thanks to lesser-known savings accounts called competent accounts, which can save people with disabilities beyond the $2,000 asset limit related to benefits such as supplemental security income and Medicaid. Without an account, Safarik could risk losing government aid if he had more than $2,000 in assets saved at one time per month.
“With this competent explanation, we don’t have to worry too much,” said Deb Safarik, 71, the mother of Paul, where he lives. “I’m happy he can work and save him and that it won’t be bound by him.”
It has achieved a better life experience law, named after the 2014 law that created them, and since 2016 it has been available to individuals identified by doctors as having a disability before the age of 26. An estimated 8 million people nationwide are already qualified.
“The fact that in the past, an individual could only save up to $2,000 or lose benefits. That really restricted a lot of families,” Elliott said. “People have been forced into a position where they can’t save their future. We can see an average account balance of $11,000 to $12,000.”
Rebecca S. Gratz / AP
Generally, competent accounts can total $100,000 without affecting supplemental security income. Lifetime balance limits for competent accounts in various states range from around $300,000 to over $500,000. They are managed by state finance personnel, and the majority can be set up online via the website. Some competent plans also accept paper applications.
Anyone can contribute to a capable account
Anyone can contribute to competent accounts in 2025, such as account owners, friends, family, organizations, nonprofits, employers and more. If the account holder is able to work and has not yet contributed to the workplace retirement plan, he or she may contribute an additional amount equal to his or her gross annual income. For 2025, that amount ranges from an additional $15,560 to $18,810, depending on the state in which you manage your account.
There are also tax benefits. As long as the money obtained from the account is used for “qualified disability costs” such as medical, education, personalized guidance and vocational training, investment returns from competent accounts are not continuing. Account holders can choose from many investment options for account funds, or save money by holding money without investing more.
Consciousness is the biggest challenge
Elliott said raising awareness of the account is the biggest challenge for the National Treasury Association (NAST), and he is also a secretary’s accountant.
“Many people are used to the idea that if you have a disability or have children, you could risk the benefits of saving money,” he said. “We need to start reaching out to people as states and countries and say, “You can look and save money. You can save yourself in the direction of buying a home.” The most difficult thing right now is to publish that message.
According to NAST data, there were only 186,641 competent accounts at the end of 2024, but an estimated 8 million eligible. As age restrictions increase, accounts will be available to people whose disability could be the result of an adult accident or may have occurred later, such as after community infection.
Andrew Warren, a senior associate of policy and research at the Financial Health Network, who studies the financial situation of Americans with disabilities, said the majority of people surveyed for the organization’s 2023 report were unaware that these accounts existed.
“Less than 1% of eligible individuals have these accounts,” Warren said. “Our research shows that one of the major barriers to becoming financially healthy for this vulnerable group is asset restrictions. However, information is being cut between ground caseworkers and direct service providers and (capable account administrators).”
Here’s what you need to know.
How do I know if I qualify for a competent account?
Two online resources – Today’s Competent National Resource Centre – introduces questions to help you determine if you or your friends or family member are eligible.
Currently, the possible accounts are:
People whose disability began by the age of 26 and those whose disability was “terminate or long term (>12 months)” and whose disability caused “severe and serious functional limitations.”
Qualified individuals must meet one of the following criteria:
Due to disability, it is covered by Supplementary Security Income (SSI) or Social Security Disability Insurance (SSDI). Ora Doctor diagnosed a disorder (physical or mental).
In 2026, the age limit for competent accounts will rise to 46.
What can I do to prepare me and my family to qualify next year?
You can now educate yourself about the account setup process. So, starting January 2026, you can quickly add money and fund your account. Family, friends and organizations can also set aside money as of January 1st with the intention of donating to an account in their personal name.
