Starting January 1, 2026, more individuals with disabilities are eligible to open tax-advantaged ABLE accounts, thanks to the ABLE Age Adjustment Act. This law extends the maximum age at which one can develop a disability and still be eligible — from 26 to 46 years old — allowing millions more Americans to take advantage of the program’s financial and independence-building benefits.

What Is an ABLE Account?

The Achieving a Better Life Experience (ABLE) Act, passed in 2014, created a way for people with disabilities and their families to save and invest money without jeopardizing eligibility for SSI and Medicaid. An ABLE account functions similarly to a 529 college savings plan — after-tax funds grow tax-free when used for qualified disability expenses, which include:

  • Housing costs and food
  • Transportation and assistive technology
  • Health care, wellness, and prevention
  • Education and employment training
  • Personal support services

Money in an ABLE account (up to $100,000) does not count toward SSI’s $2,000 asset limit.

What the Age Adjustment Act Changes

Under prior law, only individuals who developed their disability before age 26 were eligible. This excluded many people who acquired disabilities later in life through accidents, chronic illnesses, or military service. The new law raises that age to 46, expected to make about 6 million additional people eligible.

Why This Expansion Matters

  • Veterans who became disabled after military service can now qualify
  • Adults who develop disabilities in their 30s and 40s have access to the same savings tools as those disabled earlier in life
  • Families and caregivers have more flexibility to support loved ones through tax-advantaged savings

Steps to Take If You Are Newly Eligible

  • Learn about ABLE programs: Visit the ABLE National Resource Center to compare state programs — many allow nonresidents to open accounts.
  • Gather documentation: Individuals who don’t already receive SSI or SSDI may need a physician’s certification of disability onset before age 46.
  • Plan for savings goals: Consider how an ABLE account fits into your financial plan alongside any Special Needs Trust.