ABLE Accounts Now Open to More Americans with Disabilities

ABLE (Achieving a Better Life Experience) accounts are tax-advantaged accounts that enable Americans with significant disabilities to save or invest for the future without jeopardizing eligibility for public benefits. As of January 1, 2026, eligibility has expanded to include individuals whose disability began before age 46 (previously, the disability must have begun before age 26). This means that an estimated six million more Americans whose disabilities began later in life, including over one million veterans, may be eligible to open ABLE accounts.¹

If you or someone you know might benefit from an ABLE account, check out this summary of how they work.

ABLE account eligibility

If you meet the age criteria and have a significant disability, you may be eligible to open an account. If you are already receiving SSI or Social Security Disability Insurance (SSDI), you automatically qualify. You may also qualify if you’re not receiving those benefits but meet Social Security’s definition of disability and are able to obtain certification from a physician. If you have a family member who qualifies, you may be able to open and oversee an ABLE account on that person’s behalf if you are legally authorized to do so (for example, you’re the parent or legal guardian of a minor or someone who is legally unable to manage his or her account, or you have power of attorney). The individual with the disability remains both the account owner and the beneficiary. No matter who opens the account, each eligible beneficiary can have only one ABLE account.

Key features

Programs are run by states. You can open an ABLE account in your own state if it has an ABLE program or in any state that allows nonresidents to join (many do).

Accounts offer several tax benefits. Any earnings on contributions accumulate tax deferred at the federal level (and in some cases at the state level). When money is withdrawn, the earnings on these distributions will be tax-free if used to pay qualified expenses. Though no federal income tax deduction is available, some states offer tax incentives to residents, such as a deduction for contributions.

Before investing in an ABLE plan, consider whether your state offers an ABLE plan that provides residents with favorable state tax benefits. Consult a tax professional for more information. ABLE accounts may be protected from creditors if you invest in your own state’s program, depending on the state.

Having an account generally does not affect eligibility for public benefits. People with disabilities often rely on Supplemental Security Income (SSI), Medicaid, Medicare, and other public benefits. However, eligibility for these benefits depends on meeting a means or resource test. To qualify, individuals can have only $2,000 in countable assets, such as savings and retirement funds. Because funds in an ABLE account generally do not count toward this asset limit, people may put money aside for their future needs without jeopardizing their eligibility for public benefits. (SSI benefits may be temporarily affected once an account reaches $100,000.)

Contributions can be made by the account owner or others. Multiple people may contribute, including the individual with the disability, family members, friends, and employers. Contributions may also come from sources such as special needs trusts, estates, or eligible 529 plan or 530A account (Trump Account) rollovers. Annual and lifetime contribution limits apply. Contributions from all donors combined during the year can’t exceed an annual limit, which is $20,000 in 2026. ABLE account owners who work and who don’t have an employer-sponsored retirement account, may save an additional $15,650 from their earnings in 2026 ($17,990 in Hawaii and $19,550 in Alaska). Each state sets its own lifetime limit. ABLE account beneficiaries who make contributions to their accounts may also be eligible to claim a federal tax credit for qualified retirement savings contributions known as the Saver’s Credit (maximum contribution limit is $2,100 in 2026).

Funds can be spent on a wide range of things. The definition of qualified disability expenses is broad and generally includes housing costs, home improvement and modification, transportation, health care, education, employment training, assistive technology, and personal assistance, among others.

Other planning tools may also be used. An ABLE account is meant to be an additional tool — not the only tool — that can be used to save for future expenses. Other tools, which include third-party and special needs trusts, have unique benefits and drawbacks and may also be suitable. (The use of trusts involves a complex web of tax rules and regulations and incurs up-front costs and often has ongoing administration fees.)

Opening an account

You can open an ABLE account through each state’s ABLE plan website by filling out an online application or using another option provided by the state’s plan. First, you’ll need to gather some personal information and follow other steps, including obtaining a signed Disability Certification. The ABLE National Resource Center’s website provides a number of resources to help you learn more about ABLE accounts, including a state plan comparison tool and step-by-step guidelines for opening and contributing to an account. Visit their website at ablenrc.org.

Participating in an ABLE account may involve investment risk, including the possible loss of principal, and there can be no assurance that any investing strategy will be successful. Carefully consider a portfolio’s level of risk, charges, and expenses before investing. The program’s official disclosure statement and applicable prospectuses contain this and other information about the investment options, underlying investments, and the investment company.

1) ABLE National Resource Center, 2026