A MAGA savings account is a tax-advantaged savings tool for people with disabilities

A MAGA savings account — formally called a Medicaid Achievement and Growth Account — lets you set aside money without losing Medicaid coverage. Normally, if you have Medicaid and your savings exceed a certain limit (usually $2,000 for individuals), you lose your benefits. A MAGA account lets you save beyond that limit in a separate account, and the money in it does not count toward the resource limit that would otherwise disqualify you.

The account is designed for people who receive Supplemental Security Income (SSI) or Medicaid based on disability. You deposit money into the account, and it grows tax-free. When you withdraw money, you can use it for any purpose — there are no restrictions on how you spend it once it is yours. The key difference from a regular savings account is that Medicaid does not count the balance against your resource limit, so you can keep your health coverage while building savings.

Not every state offers MAGA accounts, and the rules vary significantly by state. Some states have had the program for years; others have added it recently or do not offer it at all. If your state does offer one, you typically set it up through your state's Medicaid agency or a designated financial institution.

Key Takeaways

  • A MAGA account lets you save money without losing Medicaid coverage, because the balance does not count toward your resource limit.
  • The account is only open to people receiving SSI or Medicaid based on disability, and availability depends on your state.
  • Money in the account grows tax-free and can be withdrawn and spent on anything, with no restrictions on use.
  • You must set up the account through your state's Medicaid agency or an approved financial partner, not through a regular bank.

How the resource limit works and why it matters

Medicaid and SSI have resource limits — caps on how much money and property you can own and still receive benefits. For SSI, the limit is typically $2,000 for an individual and $3,000 for a couple. If your savings go above that, you lose SSI payments and often Medicaid coverage as well. This creates a trap: you cannot save for emergencies, a car, or a down payment without risking your health insurance.

A MAGA account breaks that trap by being excluded from the resource count. Money you deposit into the account does not count toward the $2,000 limit. You can have $2,000 in a regular savings account and another $10,000 in your MAGA account without losing benefits. The two are tracked separately, and only the regular account counts.

This matters because it lets you build a real safety net. Without a MAGA account, many people on SSI stay poor by necessity — saving money costs them their benefits. With one, you can work toward financial stability without that penalty.

Which states offer MAGA accounts and how to find yours

MAGA accounts are not available everywhere. As of now, fewer than half of U.S. states have established them. States that do offer them include California, Colorado, Delaware, Florida, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. This list changes as more states adopt the program, so the state where you live may have added one since this was written.

To find out whether your state offers a MAGA account, contact your state's Medicaid agency directly. You can find the contact information through your state health department website or by calling 1-800-MEDICARE and asking for a referral to your state Medicaid office. You can also reach out to your local disability services office or a benefits planning organization — many nonprofits that work with people on SSI know which programs are available in your area.

If your state does not currently offer MAGA accounts, ask your Medicaid caseworker whether there are other savings programs available, such as ABLE accounts (which have different rules and income limits) or work incentive programs that let you set aside earnings.

How to open and use a MAGA account

The process for opening a MAGA account varies by state, but the basic steps are similar. First, contact your state Medicaid agency or the financial institution your state has partnered with to run the program. You will need to provide proof that you receive SSI or Medicaid based on disability — usually a copy of your SSI award letter or Medicaid approval notice.

Once you are approved, you open the account and begin depositing money. There is usually no minimum deposit required, though some states or institutions may have one. You can deposit money from any source: wages from work, gifts from family, tax refunds, or money you already have saved. The account itself is held in your name, and you control it.

When you want to withdraw money, you can do so at any time without penalty. There is no waiting period, no approval process, and no restriction on what you use the money for. You might withdraw it to pay for a car repair, buy a computer for school, cover medical costs not covered by Medicaid, or simply move it to your regular checking account. The money is yours to use as you see fit.

Tax treatment and what happens to the account

Money in a MAGA account grows tax-free while it sits in the account. You do not pay income tax on interest or earnings the account generates. When you withdraw money, you also do not owe tax on the withdrawal itself — you are taking out money you already earned or received, not income.

If you stop receiving SSI or Medicaid, the account does not automatically close, but it may no longer have the same tax advantages or resource-limit protection. The rules at that point depend on your state and your specific situation. If you regain SSI or Medicaid may be able to access later, you may be able to re-enroll the account in the program. Ask your Medicaid caseworker what happens to your account if your benefits change.

If you pass away, the account becomes part of your estate and is handled according to your will or your state's inheritance laws. It does not automatically go to Medicaid or the state.

MAGA accounts versus ABLE accounts

ABLE accounts are another savings tool for people with disabilities, and they are available in all 50 states. Both MAGA and ABLE accounts let you save without losing Medicaid, but they have different rules and serve different purposes.

An ABLE account has an annual contribution limit (currently $18,000 per year, though this changes with inflation) and a total balance limit (currently $235,000). A MAGA account typically has no contribution limit and no balance limit — you can save as much as you want. However, ABLE accounts are available nationwide, while MAGA accounts are only in some states. If your state offers both, a MAGA account may be better for larger savings; if your state only offers ABLE, that is your option. If your state offers neither, you may want to explore work incentive programs or other alternatives.

What to do if your state does not offer MAGA accounts

If you live in a state without a MAGA program, you have other options. An ABLE account is available to you if you became disabled before age 26 and meet other criteria. Work incentive programs, such as Plan to Achieve Self-Support (PASS), let you set aside income and resources for a specific work goal without losing SSI or Medicaid. A benefits planning organization can help you figure out which option fits your situation.

You can also contact your state legislator or disability advocacy group to ask whether your state is considering a MAGA program. Several states have added them in recent years in response to advocacy from disability communities.

Frequently Asked Questions

Does money in a MAGA account affect my SSI payment amount?

No. The account is excluded from the resource limit, so it does not reduce your SSI payment or make you ineligible. Your SSI payment is based on your income and other resources that do count, not on what is in your MAGA account.

Can I have both a MAGA account and an ABLE account?

Yes, in states that offer both. However, there are limits on how much you can contribute to an ABLE account each year, so you may want to talk with a benefits planner about which account to prioritize based on your savings goals.

What happens to my MAGA account if I move to a different state?

The rules depend on your new state. If your new state also has a MAGA program, you may be able to transfer the account or open a new one. If it does not, you will need to decide what to do with the money — you can keep it in the account, but it may no longer have the same protections. Contact your new state's Medicaid agency for guidance.

Can I use a MAGA account to save for a house down payment?

Yes. There are no restrictions on what you use the money for. You can save for a down payment, a car, education, or any other purpose. The account is simply a way to set aside money without losing Medicaid.

Do I need a job to open a MAGA account?

No. You can deposit money from any source — gifts, tax refunds, inheritance, or work earnings. You do not need to be employed to open or use the account.