What the Age Adjustment Act Means for ABLE Account Eligibility

For nearly a decade, ABLE (Achieving a Better Life Experience) accounts have helped individuals with disabilities gain greater financial independence. Now upon us is one of the most meaningful updates since the program’s launch: an expansion of who can qualify for an ABLE account—opening new financial opportunities for an estimated 6 million adults.

Here is everything you need to know about the ABLE Age Adjustment Act, including what has changed, who it impacts, and how to get started. Let’s jump in.

What Is an ABLE Account?

An ABLE account is a tax-advantaged account designed specifically for individuals with disabilities.

Its purpose is simple but powerful: to let eligible individuals save and spend money without putting essential benefits like Supplemental Security Income (SSI) or Medicaid at risk. In traditional savings accounts, even a small amount of money can count toward strict asset limits and jeopardize eligibility. ABLE accounts change that by shielding these savings, giving people the ability to plan, build stability, and cover important expenses without fear of losing critical support.

Key Benefits of ABLE Accounts

Beyond protecting access to essential benefits, here are some additional advantages of opening an ABLE account:

• Tax-free growth when funds are used for qualified disability expenses
• Ownership and control by the person with the disability
• Flexible use of funds for a wide range of expenses, including:
  • Housing and transportation
  • Education and job training
  • Healthcare and assistive technology
  • Daily living expenses

The ABLE Age Adjustment Act: What is Changing

Since ABLE accounts were introduced in 2016, eligibility has been limited to individuals whose disability began before age 26.

Here’s what’s changing: Eligibility will now include individuals whose disability began before age 46.

This change represents the largest expansion of ABLE eligibility since the program was created, dramatically widening access to tax-advantaged savings. However, everything else about ABLE accounts remains the same:

• Tax advantages
• Eligible expenses
• Benefit protections
• Ownership structure

How This Change Impacts the Newly Eligible Population

Significant Expansion of Access

Raising the age threshold is expected to make more than 6 million additional adults eligible for ABLE accounts.

This change expands access to people whose disabilities emerge or are diagnosed later in life, including those living with:

• Multiple sclerosis (MS)
• Mental health conditions
• Traumatic brain injuries
• Cancer-related or chronic illness-related disabilities
• Rare genetic disorders diagnosed in adulthood
• Progressive conditions like Parkinson’s or ALS
• Service-connected disabilities among veterans
• And more

New Financial Opportunities

For newly eligible adults, ABLE accounts can support greater financial stability by allowing them to:

• Save and invest without risking SSI, Medicaid, or VA benefits
• Build emergency funds
• Cover disability-related expenses without draining personal savings
• Plan for recurring costs like housing, transportation, or healthcare
• Reduce reliance on credit cards or high-interest financing
• Support longer-term financial planning, helping individuals prepare for future needs, including retirement, while maintaining benefit eligibility

Greater Autonomy and Control

Many adults with disabilities rely on family members, caregivers, or special needs trusts to manage financial support. ABLE accounts offer a more direct and flexible option.

With an ABLE account, individuals maintain control over their own savings—creating a clearer path toward independence, confidence, and financial flexibility.

Getting Started With an ABLE Account for Yourself or a Loved One

1. Confirm You’re Eligible

You must be a U.S. resident with a disability or blindness that began before age 26 (expanding to before age 46 on January 1, 2026) and is expected to last at least a year, and you must either be eligible for SSI or SSDI because of that disability, have a condition on Social Security’s List of Compassionate Allowances Conditions, or have a signed diagnosis form from a licensed physician available if requested.

2. Gather Medical Documentation

You may be asked to self-certify or provide documentation to confirm your eligibility. Medical records or benefit determinations can help support this process.

3. Select an ABLE Program

There are dozens of ABLE programs available nationwide, including both state-based and national options. Programs vary in fees, features, and investment choices. You can explore and compare options using Vestwell’s ABLE search tool to find the best fit for your needs.

4. Learn How ABLE Works With Your Other Benefits

ABLE accounts interact with SSI, Medicaid, housing assistance, VA benefits, and other programs. Understanding these rules can help you maximize value while staying compliant.

5. Start Planning Your Contributions

For 2026, the ABLE contribution limit is $20,000. If you’re eligible for ABLE to Work, which allows some working individuals with disabilities to contribute more to their ABLE account, you may be able to save above and beyond the standard $20,000 limit, depending on where you live:

• Residents of the 48 contiguous states and Washington, DC: up to an additional $15,650
• Alaska residents: up to an additional $19,550
• Hawaii residents: up to an additional $17,990

When opening your account and planning contributions, think about how ABLE savings could support both short- and long-term needs, including:

• Emergency savings
• Ongoing disability-related expenses
• Assistive technology or mobility needs
• Longer-term financial goals

You can also share your ABLE account information with family and friends, who may make gifting contributions to help support your savings.

More Resources for Getting Started

For more information on ABLE accounts, getting started, and making the most of your new account, check out our ABLE Checklist.

Tips for Family Members and Caregivers

If you support someone with a qualifying disability, you can open and manage an ABLE account on their behalf. Whether you’re a parent, guardian, or caregiver, here are some tips for getting started:

• Collect medical records or benefit determinations that may be needed to confirm eligibility.
• Talk through financial goals together. Discuss priorities like everyday expenses, emergency savings, assistive technology, or longer-term planning.
• Consider how ABLE fits into the bigger picture. ABLE accounts can complement existing savings, special needs trusts, or family support strategies.

A New Era of Financial Independence

The ABLE Age Adjustment Act represents a significant step forward in expanding access, enhancing financial security, and providing millions more people with the tools to save, spend, and plan with confidence.

Whether you’re newly eligible or supporting someone who is, get started today to unlock greater independence and opportunity.