ABLE Accounts Expanded on January 1, 2026: New Age 46 Eligibility, Higher Limits, and How to Open One
If you get Medicaid, Supplemental Security Income (SSI), or other supports tied to income and assets, saving money can feel risky.
An Achieving a Better Life Experience (ABLE) account is a tax-advantaged savings account for people with disabilities. It lets you save for disability-related expenses and, in most cases, keep benefits like SSI and Medicaid. It can also help protect access to other means-tested supports, like SNAP.
Major changes took effect on January 1, 2026. If your disability began before age 46, you may now qualify. The annual contribution limit also increased to $20,000.
In this guide, you’ll learn what changed, who qualifies, what you can spend the money on, and how to open an ABLE account.
Start here: Do I qualify for an ABLE account in 2026?
You may qualify if:
- Your disability or blindness began before age 46, and
- It has lasted, or is expected to last, at least one year
Good to know:
- There are no income limits to open an ABLE account.
- You can be any age now. What matters is when your disability began.
- You can only have one ABLE account per person.
What is an ABLE account?
ABLE stands for Achieving a Better Life Experience. ABLE accounts were created by a federal law passed in 2014, thanks in part to The Arc’s advocacy.
An ABLE account is designed for one main purpose: so people with disabilities can save money and build assets without losing benefits.
How do ABLE accounts work?
People usually want to know three things: Is it tax-free? Will it affect my benefits? What can I use it for? Here’s what you should know:
- You put money into the account after taxes.
- Your savings can grow tax-free.
- You can take money out tax-free when you spend it on qualified disability expenses.
- ABLE savings are generally treated differently than a regular bank account for SSI and Medicaid.
Why this matters: To qualify for need-based federal benefits like SSI, a person often can’t have more than $2,000 in countable resources outside limited exceptions. That makes it hard to plan for a more stable life.
ABLE accounts are one way to save without triggering the same rules as a regular savings account.
Read more: Social Security and Income Maintenance
What changed on January 1, 2026?
- The age rule expanded
As of January 1, 2026, you may open an ABLE account if your disability began before age 46. This is an increase from the original threshold age of 26.The National Disability Institute projects about 6 million more people will qualify. Recent reporting has also cited estimates that eligibility may grow to about 14 million people, up from about 8 million.Key takeaway: People of any age can open an ABLE account, as long as the disability began before age 46. - The annual contribution limit increased
The annual contribution limit in 2026 is $20,000. Anyone can contribute, including family, friends, and employers.
Who qualifies for ABLE accounts in 2026?
You may qualify if:
- You have a disability or blindness that has lasted, or will last, at least one year, and
- Your disability began before age 46
Only one ABLE account per person is allowed.
How is eligibility documented?
Many people qualify in one of these ways:
- You receive Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI) or Disabled Adult Child (DAC) benefits
If you receive SSI or other Social Security disability benefits, the path is often simpler. - You don’t receive SSI, SSDI, or DAC
You can qualify with a signed certification from a licensed physician stating your disability began before age 46 and meets program rules. The ABLE National Resource Center provides a sample form you can share with a doctor.
How much can you contribute in 2026?
Standard annual limit: $20,000
Can I contribute more if I work?
Maybe. ABLE-to-Work lets some working account owners contribute above the standard annual limit. Under recent updates, this feature is now permanent.
Eligible employed account owners may contribute up to $34,064 annually. The extra amount varies by state and work situation, and is higher in Alaska and Hawaii. Income counts towards Substantial Gainful Activity (SGA) and affects benefits the same as it always has, even when it is directly deposited into an ABLE account.
How much money can I keep in my ABLE account?
States set overall limits on how much can be in an ABLE account, ranging from about $235,000 to $675,000.
If you receive SSI, there is an important cap to know: Up to $100,000 in an ABLE account is excluded from SSI asset limits. If an ABLE account exceeds $100,000, when combined with all countable resources, your SSI benefits will be suspended until funds are spent down to under the resource limit.
What ABLE account features became permanent in 2026?
These changes were made permanent under recent updates:
- ABLE-to-Work
Some working account owners can contribute above the standard annual limit. - Saver’s Tax Credit
ABLE account owners who work and contribute to their own account may be eligible for the Federal Saver’s Tax Credit. - 529 Rollovers
Funds from a 529 Education Savings Account can roll over into an ABLE account, within annual limits.
What can you spend ABLE money on?
ABLE funds can be used for qualified disability expenses, including:
- Housing (rent, mortgage payments, utilities)
- Basic living costs, including groceries
- Health and medical expenses
- Transportation, public transit, and car repairs
- Education and employment training
- Personal support services
- Assistive technology (including mobility equipment)
- Legal fees
- Wellness programs
There is no age limit on withdrawals.
If distributions are used for non-qualified expenses, the earnings portion may be taxable and may face a 10% penalty.
How do I open an ABLE account?
Most ABLE accounts are opened through state programs. Many plans accept out-of-state residents, but not all do.
Step 1: Confirm the age-of-onset rule
Did your disability begin before age 46?
Step 2: Gather what you need
- If you receive SSI, SSDI, or DAC, have your information ready.
- If you don’t, schedule a visit with a doctor who can complete the required certification.
Step 3: Choose a plan
Start with your own state plan, if your state offers one. Some states don’t have ABLE programs, including:
- North Dakota
- South Dakota
- Wisconsin
Many plans are open to out-of-state residents. You can also transfer your account between state plans.
Step 4: Pick the features that fit your life
When comparing plans, look for:
- A debit card option, if you need easy access for everyday spending
- A mobile app
- Cash account interest rates
- Investment options if you are saving for longer-term goals
Step 5: Open the account
Most plans open accounts online. Some plans allow mail-in applications. Some plans don’t require an initial deposit, but the average initial deposit is about $25.
Are there any downsides to an ABLE account?
ABLE accounts can be powerful, but they’re not perfect.
- Some plans are online-only. If internet access or forms are a barrier, look for plans with paper applications or ask a trusted person to support you through the steps.
- Withdrawals can take time. If you plan to use ABLE money for monthly bills, plan ahead.
- Medicaid payback rules may apply in some states. In some states, remaining funds after the account owner dies may be subject to Medicaid recovery. Several states have passed laws that exempt ABLE accounts from Medicaid recovery. Still, check your plan’s rules.
How do I get the most out of an ABLE account?
- Start with a clear goal (rent buffer, accessible vehicle repairs, support worker hours).
- Set a small monthly contribution on autopay, if you can.
- Share the account link with trusted family and friends who ask how to support you.
- If you work, check whether ABLE-to-Work could raise your contribution amount.
- If you have a 529 plan that is no longer needed for school, ask whether a rollover makes sense for your situation.
Even a small amount saved can mean fewer emergencies and more choices.
More Resources
- New York Times: More Disabled People Can Open Special Savings Accounts. Do You Qualify?
- Yahoo Finance: Newly Expanded ABLE Accounts Create ‘Powerful Retirement’ Tool for Millions of Disabled Americans
- The Arc: Financing the Future
- ABLE National Resource Center
Informed by: Darcy Milburn, Director of Social Security & Healthcare Policy at The Arc of the United States
Reviewed by: Mike Nagel, Policy Manager at The Arc of the United States










