Takeaways
- Starting January 1, 2026, the maximum age of disability onset for ABLE account eligibility will increase from 26 to 46 due to the ABLE Age Adjustment Act.
- The expansion aims to allow millions more Americans who developed disabilities later in life to save and invest without losing eligibility for critical public benefits like Supplemental Security Income (SSI) and Medicaid.
- ABLE accounts allow individuals with disabilities to save up to $100,000 for qualified disability expenses. This money does not count against the $2,000 asset limit for SSI.
- Newly eligible individuals are advised to begin researching state ABLE programs, gathering necessary disability documentation, planning savings goals, and coordinating with benefits counselors before the 2026 effective date.
Starting January 1, 2026, more individuals with disabilities will be eligible to open tax-advantaged ABLE accounts, thanks to an update to federal law. The ABLE Age Adjustment Act will extend the maximum age at which one can develop a disability and be eligible for an ABLE account. This will allow millions more Americans to take advantage of the program’s financial and independence-building benefits.
What Is the ABLE Act?
The Achieving a Better Life Experience (ABLE) Act, passed in 2014, created a way for people with disabilities and their families to save and invest money without jeopardizing eligibility for critical public benefits such as Supplemental Security Income (SSI) and Medicaid.
An ABLE account functions similar to a 529 college savings plan. It allows individuals to deposit after-tax funds into a special savings account that can grow tax-free if the money is used for qualified disability expenses. These expenses are broadly defined and may include things like:
- Housing costs and food
- Transportation and assistive technology
- Health care, wellness, and prevention
- Basic living expenses
- Education, employment training, and related support
- Personal support services
Money in an ABLE account, which can be up to $100,000, does not count toward SSI’s $2,000 asset limit. This makes the program a useful tool for helping individuals save for their future needs while maintaining essential benefits.
What the Age Adjustment Act Changes
Under current law, only individuals who developed their disability before age 26 are eligible to open an ABLE account. This restriction has excluded many people who acquired disabilities later in life, such as through accidents, chronic illnesses, or military service.
The ABLE Age Adjustment Act, which amends Section 529A of the Internal Revenue Code, raises the age of disability onset from 26 to 46 years old beginning January 1, 2026. This change is expected to make about 6 million additional people eligible.
Why This Expansion Matters
The age expansion represents a major step toward financial equity for people with disabilities. By increasing the age limit, the federal government is recognizing that disabilities can develop at any stage of life and that all individuals with disabilities should have the opportunity to save, invest, and plan for their future without losing public benefits.
For example, many veterans who may have become disabled after military service will now qualify. Adults who develop disabilities in their 30s and into their 40s will now have access to the same savings tools as those who were disabled earlier in life. Families and caregivers will have more flexibility to support loved ones through tax-advantaged savings.
The change also has broader economic implications. ABLE accounts can help reduce reliance on public benefits by allowing individuals to build financial security, pursue education or employment, and pay for needed supports.
What Potential Applicants Can Do Before 2026
Although the age adjustment doesn’t take effect until January 1, 2026, people who will become newly eligible can begin preparing now. Steps to take include:
- Learn about ABLE programs. Each state has at least one ABLE program and many allow nonresidents to open accounts. Visit the ABLE National Resource Center to compare state programs and their features.
- Gather documentation. Eligibility for an ABLE account requires proof of disability onset before age 46 (starting in 2026). Individuals who do not already receive SSI or Social Security Disability Insurance (SSDI) may need a certification from a licensed physician.
- Plan for savings goals. Think about how an ABLE account could fit into your financial plan, whether to save for assistive technology, medical costs, housing, or long-term independence. Knowing your objective as an ABLE account owner will help you select the plan that will best suit your needs.
- Coordinate with other benefits. Work with a benefits counselor or financial planner familiar with disability programs to ensure that opening an ABLE account complements your existing benefits, such as Medicaid, SSI, or SNAP.
Looking Ahead
The expansion of the ABLE program under the ABLE Age Adjustment Act marks a significant policy milestone in improving financial inclusion for people with disabilities. Beginning in 2026, millions more Americans will have an increased opportunity to save and invest for their futures — without fear of losing the support they depend on.
For more information and updates, visit the ABLE National Resource Center website or contact your state’s ABLE program administrator. ABLE programs are available in most states in the United States, as well as the District of Columbia. If your state does not have its own program, you may be able to open an ABLE account in a state that accepts eligible individuals who live out of state.
Contact Our Team
Clancy & Associates, Ltd., is the only full-service special needs planning law firm in Illinois. Our attorneys are dedicated to supporting individuals with special needs and their families. We, too, are parents and siblings of loved ones who have a disability and know how daunting and exhausting it is to go from firm-to-firm and provider-to-provider to find solutions and help.
Each child and family’s needs are very different — and we provide tailored, common sense ideas and strategies that reflect your goals, resources, and hopes for your family’s future security.
Contact us today to schedule a consultation to learn more about our services and talk about your planning needs.