Starting January 1, 2026, the biggest change for ABLE accounts is the ABLE Age Adjustment Act, which expands eligibility by raising the disability onset age from 26 to 46, allowing millions more Americans to save tax-advantaged for disability expenses without losing benefits like SSI/Medicaid, while key features like the $100k asset limit for SSI, tax-free growth, and broad qualified expense categories remain.
Key 2026 Rule Changes & Continued Features:
- Expanded Eligibility Age: The disability onset must have started before age 46 (up from 26) for new beneficiaries to qualify.
- Asset Protection: Up to $100,000 in an ABLE account doesn’t count towards the SSI resource limit.
- Tax Advantages: Tax-free growth and tax-free withdrawals for qualified disability expenses (housing, health, education, etc.).
- Contribution Limits: The annual limit is around $19,000 (2025), but working beneficiaries can contribute more, potentially up to the standard limit in 2026 if eligible.
- Broad Qualified Expenses: Funds cover housing, education, transportation, health, employment training, and more.
- No Age Limit on Withdrawals: You can use the funds for qualified expenses at any age.
What This Means for You (or Others):
- More People Can Save: People with disabilities that began in adulthood (up to age 46) can now access these benefits, including many veterans.
- Plan Ahead: If you’re newly eligible or know someone who might be, start gathering disability documentation and comparing state ABLE programs now.
- State Plans Matter: Check resources like ABLE National Resource Center (ABLE NRC) and ABLE Today to find the best plan for you, considering state tax deductions and fees.
The ABLE Age Adjustment Act makes ABLE accounts a powerful tool for financial security, ensuring that saving for disability doesn’t jeopardize essential benefits.
If you have been discriminated in Massachusetts based on your disability at your place of employment or housing or place of public accommodation, contact the Law Offices of Renee Lazar at 978-844-4095 to schedule a FREE one hour no obligation consultation.
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