Access to special accounts that allow individuals with disabilities to save without losing out on government benefits will soon expand dramatically and people with the accounts will be able to save more in them than ever before.
ABLE accounts will be available to Americans with disabilities that onset by age 46 beginning in January. Until now, the age limit has been 26.
Created under a 2014 law, ABLE accounts offer people with disabilities the opportunity to save up to $100,000 without sacrificing eligibility for Supplemental Security Income. Medicaid and several other government benefits can be retained no matter how much is in the accounts.
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Money saved can be used to pay for qualified disability expenses including education, health care, transportation and housing. Interest earned is tax-free.
With the change, the estimated number of individuals eligible for ABLE accounts is expected to grow from 8 million to 14 million, according to the National Disability Institute.
Disability advocates have been pushing for expanded eligibility for years.
“Raising the age of onset to 46 will finally open the door to many adults who became disabled later in life — through accident, illness, or military service. This will strengthen all ABLE programs by boosting participation, growing assets and improving long-term sustainability,” said Heather Sachs, policy and advocacy co-director at the National Down Syndrome Congress.
In addition to expanding the eligibility pool, people with disabilities will also be able to save more money in their ABLE accounts in 2026. The contribution limit will increase to $20,000, up from $19,000 this year.
That update comes after the Internal Revenue Service raised the federal gift tax limit, which also serves as the cap on annual deposits for ABLE accounts.
There is one exception to that limit, however. Workers with disabilities living in the 48 contiguous states are allowed to save up to $15,650 in earnings in ABLE accounts above and beyond the gift tax limit for the year if they do not participate in an employer sponsored retirement plan, according to the ABLE National Resource Center. For 2026, that figure rises to $19,550 for Alaska residents and $17,990 for those in Hawaii.
The increased savings allowance for workers with disabilities and a handful of other provisions were originally set to expire the end of 2025. But, federal lawmakers opted to make the option permanent as part of the “One Big Beautiful Bill Act,” which passed in July.
In addition, the legislation ensures that funds from traditional 529 college savings plans can roll over into ABLE accounts. And, ABLE contributions will remain eligible for what’s known as the Saver’s Credit.
As of the end of September, there were 223,182 ABLE accounts open with $2.87 billion in assets, according to ISS Market Intelligence, which tracks ABLE account trends.
There are programs offering ABLE accounts in 46 states and Washington, D.C., most of which are open to individuals nationwide with a disability who meet the age requirement.
