When ABLE accounts arrived in 2014, they were a game changer for families like mine. For the first time, people with disabilities could save money without putting their Supplemental Security Income (SSI) or Medicaid at risk. But there was a catch: your disability had to begin before age 26.
As of January 1, 2026, that cutoff moved to age 46. It’s one of the most meaningful changes to ABLE since the program began, and it could open the door for someone in your family who was previously shut out.
A quick refresher on ABLE accounts
An ABLE account is a tax-advantaged savings account for a person with a disability. Earnings grow tax-deferred, and withdrawals are tax-free when used for qualified disability expenses, which cover a wide range of everyday needs:
- Housing and transportation
- Education and job training
- Assistive technology
- Health, prevention, and wellness
The biggest benefit is protection. SSI limits countable resources to $2,000, but the first $100,000 in an ABLE account doesn’t count toward that limit. For a deeper comparison, see our guide to ABLE accounts vs. special needs trusts.
What changed in 2026
Under the ABLE Age Adjustment Act, anyone whose disability began before age 46 may now qualify. Importantly, you don’t need to be under 46 when you open the account. A 60-year-old whose disability began at 40 can open one today.
To qualify, the person generally must either receive SSI or Social Security disability benefits based on that disability, or have a signed disability certification that meets Social Security’s criteria.
Who might newly qualify
This change matters most for adults whose disabilities began later in life, such as those living with multiple sclerosis, a traumatic brain injury, serious mental illness, or another condition that developed in their late 20s, 30s, or early 40s. In practice, that could mean:
- A sibling injured in an accident at 35
- A spouse diagnosed with a progressive condition at 42
- An adult child whose disability emerged after college
If someone in your family was told they didn’t qualify for ABLE in the past, it’s worth taking a fresh look.
Other ABLE updates worth knowing
Higher contribution limit. Total contributions from all sources can reach $20,000 in 2026, up from $19,000 last year.
ABLE to Work is now permanent. Account owners who work and don’t participate in an employer retirement plan can contribute some of their own earnings above the standard limit, up to $15,650 in most states this year.
529 rollovers are here to stay. Families can move money from a 529 college savings plan into an ABLE account for the same beneficiary or certain family members. Rollovers count toward the annual limit, so larger balances may need to be rolled over over several years.
Planning considerations
ABLE accounts are powerful, but they work best as part of a coordinated plan. A few things to keep in mind:
- Each person can have only one ABLE account.
- When the account owner passes away, the state may be able to recover remaining funds to repay Medicaid costs.
- ABLE money used for housing should generally be spent in the same month it’s withdrawn to avoid affecting SSI.
Many families pair an ABLE account for day-to-day flexibility with a special needs trust for larger, long-term assets. Washington residents can open an account through the Washington State ABLE Savings Plan, though you’re free to choose any state’s plan.
If your loved one plans to work, read our companion post on [how a job affects SSI, SSDI, and Medicaid]([WORK AND BENEFITS BLOG URL]).
Let’s take a fresh look together
As a dad of three kids with special needs, I know how much energy goes into navigating these rules. A change in the law is a great reason to revisit your plan. Learn more about our financial planning for families with special needs, or schedule a call to see whether ABLE fits your family’s strategy.
