What Changes are Coming to ABLE Accounts in 2026- ABLE accounts help clients save for disability-related expenses not covered by insurance or other sources, without jeopardizing eligibility for needs-based benefit programs. A recent Financial Advisor article, “ABLE Accounts For Disability Are Expanding In 2026,” explains how ABLE accounts work and the changes in 2026.
Like 529 College Savings Accounts, assets in an ABLE account grow tax-free. Withdrawals for qualified needs include wheelchairs, ramps, hearing aids and print readers for visually impaired individuals, all of which are tax- and penalty-free.
Contributions for ABLE accounts, whether for a loved one or for oneself, may not be deducted from federal income taxes. However, some states do allow state-tax deductions. Consult an estate planning attorney knowledgeable about special needs planning.
Created in 2014 by the Achieving a Better Life Experience Act, ABLE accounts were only to be used by people who became disabled before age 26. However, in 2026, the age limit increases to 46, making many more disabled people eligible for this useful account, including veterans.
With the age limit increasing to 46, the number of Americans eligible for ABLE accounts will grow from eight million to as many as 14 million.
Since its first launch, the number and variety of ABLE accounts have grown dramatically. All but four states offer them, as does Washington, D.C. The total value of all current ABLE accounts is nearly $3 billion.
What Changes are Coming to ABLE Accounts in 2026
These accounts are flexible and powerful. However, not everyone is aware of them. Part of the confusion may stem from the fact that each state’s program has different guidelines. Usage fees vary, as do account maximums, which range from $235,000 to $596,925. People who receive Supplemental Security Income, or SSI, may not have more than $100,000 in an ABLE account without losing benefits. Some states allow non-state residents to open accounts; others do not.
The federal government also sets parameters. In 2026, the annual contribution cap will increase by $1,000 from $19,000 to $20,000.
Further changes were made with the OBBBA law. Account owners who have a job but don’t participate in a workplace retirement plan may contribute an additional $15,650 to their accounts, with different limits in Alaska and Hawaii. Funds left over from a 529 plan may be rolled tax-free into an ABLE account up to the annual contribution level, as long as it’s for the same beneficiary or a qualifying family member.
Speak with your estate planning attorney about how an ABLE account may be a good solution for your special needs family member. They are not for everyone and have limitations. However, for those seeking an easy, low-cost way to save without jeopardizing government benefits, they are a welcome solution.
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What Changes are Coming to ABLE Accounts in 2026
Reference: Financial Advisor (Dec. 15, 2025) “ABLE Accounts For Disability Are Expanding In 2026”
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