Key Changes to ABLE Accounts in 2026
Starting January 1, 2026, major updates to ABLE accounts will create new opportunities for individuals with disabilities to save and plan for the future. These changes are designed to expand eligibility, increase contribution limits, and provide greater financial flexibility—all while protecting access to essential benefits.
Expanded Eligibility
The ABLE Age Adjustment Act will raise the age limit for eligibility. Individuals whose disability began before age 46 can now open an ABLE account—up from the previous limit of age 26. This adjustment is expected to make six million more people eligible.
Increased Contribution Limits
Starting in 2026, the annual contribution limit will rise to $20,000, giving families and individuals more room to save.
Tax Advantages
ABLE accounts offer powerful tax benefits: contributions grow tax-free, and withdrawals for qualified disability expenses are not counted as income for means-tested programs like Medicaid and SSI.
Asset Protection
You can save up to $100,000 in an ABLE account without affecting SSI benefits—helping you build financial security without losing critical support. The limits are different for SSDI beneficiaries.
Financial Flexibility
Funds in an ABLE account can be used for a wide range of disability-related expenses, including housing, education, transportation, healthcare, and employment support, giving individuals more autonomy and peace of mind.
Why This Matters
These changes represent a significant step toward financial empowerment for individuals with disabilities. By expanding eligibility and increasing contribution limits, ABLE accounts will make it easier to save, plan, and maintain access to vital benefits.
If you’re considering opening an ABLE account, check your state-specific plan for details and requirements to find the best fit for your needs. Check out the Washington State ABLE Savings Program and the Alaska ABLE Plan for additional information.
Contact us today to book a consultation with one of our social workers to learn how an ABLE account can support you or your loved one on the path to greater self-sufficiency!