For nearly a decade, a little-known program has offered people with disabilities a rare opportunity: to legally save money without losing access to essential public benefits. Even so, for millions of Americans, this option has always been out of reach, not because of lack of need, but because of a strict age requirement.
And that is about to change.
Starting in 2026, people who became disabled by age 46 will be able to qualify for so-called ABLE accounts, a special type of savings account created to allow individuals with disabilities to save and invest without jeopardizing federal benefits such as Medicaid and Supplemental Security Income (SSI). The change, approved by Congress in 2022, takes effect next year and represents the most significant expansion of the program since its creation.
According to estimates from the National Disability Institute, about six million additional people will become eligible, including approximately one million veterans. The total number of Americans potentially eligible for ABLE accounts is expected to jump from about eight million to nearly 14 million.
“This is a huge change for our community,” said Mark Raymond Jr., national outreach coordinator for ABLE Today, an initiative that promotes awareness of the program. For disability rights advocates, this is not just a technical adjustment, but a concrete step toward breaking a long-standing cycle of financial exclusion.
What ABLE accounts are and why they matter
ABLE accounts, short for Achieving a Better Life Experience, were created in 2014 and inspired by 529 college savings plans. Like those plans, ABLE accounts allow money to be saved, invested, and withdrawn without federal taxes, as long as the funds are used for qualified expenses.
The fundamental difference lies in the population served and the program’s social impact. For people with disabilities, saving money has long been a structural challenge. To qualify for needs-based benefits such as Medicaid and SSI, the asset limit is typically just US$ 2,000. Any amount above that can result in the loss of benefits.
In practice, this rule creates a cruel paradox: to continue receiving health care and basic income, many people with disabilities must remain financially vulnerable. “The rules end up trapping people in poverty,” Raymond said. “And living with a disability is expensive.”
ABLE accounts were created to break this logic. Money deposited in them does not count toward eligibility calculations for most public programs. SSI beneficiaries can hold up to US$ 100,000 in an ABLE account without losing benefits, while there is no balance limit for Medicaid eligibility.
Why expanding the age limit changes everything
Until now, only people whose disability began before age 26 could qualify for an ABLE account. That criterion excluded a huge portion of the population: veterans injured in combat, people who suffered serious accidents in adulthood, and individuals diagnosed later in life with degenerative diseases or mental health conditions.
Starting in 2026, the age limit rises to 46. This means that someone who was injured at 30, developed multiple sclerosis at 40, or began dealing with a disabling condition after returning from military service will finally be able to access this type of protected savings.
Raymond himself is an example. At 27, a diving accident damaged his spinal cord and left him without mobility. Even if he had known about the program at the time, he would not have qualified. “I was simply too old,” he said. Now, at 37, he plans to open his account next year.
A program still underused
Despite having existed for about ten years, adoption of ABLE accounts has been slow. As of the end of September, there were just over 223,000 active accounts, holding approximately US$ 2.9 billion in assets, according to ISS Market Intelligence. That number is small compared with the millions of people who are potentially eligible.
Thomas Foley, executive director of the National Disability Institute, believes awareness is beginning to grow, but acknowledges there is still a long way to go. “The message is getting out,” he said. “But we still have a lot of work ahead.”
One obstacle is simple and brutal: not everyone has money to save. Darcy Milburn, a financial specialist for people with disabilities at the Arc, notes that ABLE accounts can function as an emergency fund, but only for those who are able to make deposits. “To benefit, you have to have something to put into the account,” she said.
Who can contribute and how the money can be used
In addition to the account holder, family members, friends, and even employers can contribute to an ABLE account. This flexibility allows the account to function as a collective financial support tool.
Funds can be used for a wide range of disability-related and everyday expenses. This includes basic costs such as housing, food, and transportation; medical and health expenses; assistive technology such as motorized wheelchairs; legal fees; education; and even adapted transportation.
This breadth makes the account not only a long-term savings vehicle, but also a practical tool for managing recurring expenses and emergencies.
Contribution limits and new advantages
In 2026, the annual contribution limit for ABLE accounts will be US$ 20,000, up from the US$ 19,000 allowed in 2025. In addition, account holders who work and do not participate in an employer-sponsored retirement plan will be able to contribute an extra amount of up to US$ 15,650 through a benefit known as ABLE-to-Work. In Alaska and Hawaii, that amount is even higher.
Initially temporary, this benefit was made permanent by budget legislation passed this year.
States also impose maximum limits on total account balances, which range from about US$ 235,000 to nearly US$ 600,000. However, for SSI beneficiaries, the practical limit remains US$ 100,000, above which benefits may be suspended.
Are there risks or drawbacks?
In some states, remaining balances in an ABLE account after the account holder’s death may be subject to Medicaid recovery rules, allowing the state to claim the funds to cover prior medical care costs.
Some states, such as Virginia, have passed laws exempting ABLE accounts from this recovery. According to Mary Morris, director of the Commonwealth Savers program, reimbursement cases have not been common, but experts recommend caution. Checking state-specific rules is an essential step before opening an account.
How to prepare now
Those who already receive SSI or Social Security disability benefits before the age limit qualify automatically. For others, it will be necessary to obtain a medical certification confirming the disability. The ABLE National Resource Center provides forms that can be taken to a physician, and this certification can be completed as early as 2025, ahead of opening the account.
It is also advisable to compare available plans. Although there is no federal tax deduction for contributions, some states offer tax incentives. Many plans accept residents from other states and offer features such as debit cards, mobile apps, and investment options.
These options tend to be simpler than those found in traditional retirement plans. Most offer only a few funds, ranging from conservative to more aggressive. Still, for many users, the priority is not investing but keeping money accessible for everyday expenses, which makes the interest rate offered on cash accounts particularly relevant.
A modest but transformative step
ABLE accounts do not solve all the financial challenges faced by people with disabilities. But expanding the age of eligibility represents an important structural shift: recognition that disability is not limited to youth and that financial security should not be a privilege denied by arbitrary rules.
As the program matures, advocates hope for greater adoption, more investment options, and broader integration with other public policies. For now, for millions of people, the central question is simple, and powerful: do you qualify?
