The Achieving a Better Life Experience (ABLE) Act, passed in 2014, opened the door for millions of individuals with disabilities to save and invest without fear of losing essential public benefits. This tax-advantaged savings account has since become an invaluable tool for financial independence and long-term planning.
Now, with the passage of the ABLE Age Adjustment Act, even more people will gain access to these benefits. Beginning January 1, 2026, a significant expansion to eligibility takes effect, broadening the reach of ABLE accounts and offering new financial planning opportunities for individuals with disabilities.
What Is the ABLE Age Adjustment Act?
The ABLE Age Adjustment Act modifies the original ABLE Act by changing one of its most restrictive eligibility criteria: the age of disability onset. Under the current rules, an individual must have developed their disability before age 26 to qualify for an ABLE account.
Starting January 1, 2026, that threshold increases to before age 46 – a substantial change that is expected to make millions of additional individuals eligible for an ABLE account. This expansion will be especially meaningful for those whose disabilities emerged later in life, including those with chronic illnesses, neurological conditions, mental-health conditions, autoimmune disorders, injuries, or disabilities related to military service.
Why It Matters
The expansion of ABLE account eligibility is transformative. For adults whose disabilities began later in life, this may be the first opportunity to save in a protected, tax-advantaged account specifically designed to cover qualified disability expenses (QDEs).
ABLE accounts offer several benefits: they grow tax-free, withdrawals for QDEs are not taxed, and they generally do not count toward the asset limit for means-tested benefits, such as SSI and Medicaid. By expanding access, the Age Adjustment Act allows more individuals and their families to take advantage of meaningful and necessary benefits, while also planning for the future.
What Does Not Change
While we happily usher in the amended Act, some requirements remain unchanged. Individuals must still meet the disability severity criteria, including one of these conditions:
- You are entitled to Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits due to your disability
- If you do not receive SSDI or SSI, you must provide a doctor’s certification that you have a medically determinable physical or mental impairment expected to last at least 12 months that substantially limits one or more major life activities.
Funds must also still be used for QDEs, such as basic living expenses, housing, utilities, health and wellness, transportation, education and training, adaptive technologies, and legal fees. Funds may be withdrawn from an ABLE account at any time for any qualifying expense without approval.
Contribution access also remains the same. Contributions to an ABLE account can come from the account owner, family members, friends, or other supporters. Total annual contributions are limited to the annual gift tax exclusion, adjusted for inflation. In 2026 the amount that can be contributed is $20,000. The account can hold up to $100,000 before being considered a countable asset that affects eligibility for Supplemental Security Income (SSI) benefits. ABLE accounts are not considered a countable asset for Medicaid eligibility.
Planning for the Future with ABLE Accounts
The ABLE Age Adjustment Act represents a significant step forward in financial planning for individuals with disabilities. By raising the age-of-onset limit to 46, it opens the door for millions more Americans to access ABLE accounts and enjoy the benefits of protected, tax-advantaged savings.
With the rule change approaching, now is an ideal time to:
- Review potential eligibility for yourself or a loved one
- Begin planning contributions and savings goals
- Understand how an ABLE account can complement a special needs trust (SNT) or other financial planning strategies
- Discuss investment options and long-term planning with a qualified financial advisor
At Prudent Investors, our team can help you integrate an ABLE account into your broader financial plan, harmonizing it with a special needs trust or other planning strategies. With personalized guidance, we help develop a financial plan that supports both day-to-day needs and long-term financial security. Taking the first step now can provide peace of mind and help you build a foundation for independence and confidence in the years ahead. Connect with an experienced Prudent Investors advisor to learn more about how to get started.
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