Savings Accounts for Disabled Individuals Are Expanding – Do You Qualify?

New Age Eligibility Begins Next Year

Starting in 2026, the eligibility window for opening an ABLE (Achieving a Better Life Experience) account will be extended. Individuals who become disabled at any age up to 46 will now be able to take advantage of this tax‑advantaged savings tool, a significant shift from the current cut‑off at 26 years old.

Why the Change Matters

The previous age restriction limited many adults who acquire a disability later in life from accessing the benefits of an ABLE account. By raising the limit, the government aims to broaden financial security for a larger segment of the disabled community, allowing them to save for education, housing, transportation, and other essential expenses without jeopardizing means‑tested benefits.

Current Adoption Has Been Slow

Despite the advantages, ABLE accounts have struggled to gain widespread traction. Factors contributing to the sluggish uptake include limited public awareness, the narrow age eligibility, and confusion about the account’s rules and benefits. Financial counselors note that many potential users remain unaware that an ABLE account can coexist with programs like Medicaid and Supplemental Security Income (SSI).

Who Can Open an ABLE Account?

To qualify, an applicant must meet the following criteria:

• Be a U.S. citizen or national (or a qualified non‑citizen).
• Have a disability that began before the age of 46 (effective next year).
• Be eligible for SSI, SSDI, or another disability benefit, or have a medical professional certify the disability.

Key Benefits of an ABLE Account

Tax‑free growth: Earnings on contributions are not taxed, provided the funds are used for qualified disability expenses.
Protection of benefits: Balances up to $100,000 can be held without affecting eligibility for Medicaid and SSI.
Flexibility: Funds can be used for a wide range of needs, from daily living expenses to long‑term investments.

How to Get Started

Interested individuals should:

1. Confirm their eligibility based on the new age rule.
2. Choose a state‑run ABLE program that best fits their needs (most states now offer their own plans).
3. Gather required documentation, such as proof of disability and identification.
4. Open the account online or through a participating financial institution.

With the upcoming expansion, more people with disabilities will have the opportunity to build a secure financial future. If you or a loved one meet the new criteria, now is the time to explore whether an ABLE account is the right choice.