Expansion of ABLE Accounts for Disabled Americans

Starting in January 2026, millions of disabled Americans will gain access to ABLE accounts, allowing them to save and invest without risking their federal benefits, such as Medicaid. An estimated six million additional individuals, including approximately one million veterans, will qualify for these accounts, according to the National Disability Institute. The expansion follows a federal law passed in 2022 that modifies the eligibility criteria for ABLE accounts, which were originally established under the Achieving a Better Life Experience Act in 2014.

New York Times

Previously, ABLE accounts were limited to individuals who became disabled before the age of 26. However, the new regulations will raise the qualifying age to 46, enabling those who experience disabilities later in life—due to accidents, military injuries, mental health issues, or diseases like multiple sclerosis—to benefit from these accounts. This change is expected to significantly broaden the scope of individuals who can utilize ABLE accounts for their financial needs.

New York Times

ABLE accounts function similarly to 529 college savings accounts, allowing funds to be saved, invested, and withdrawn tax-free for disability-related expenses. Despite being available in 46 states and Washington, D.C., the uptake of these accounts has been slow. The expansion of eligibility is seen as a pivotal moment for the disabled community, as it provides greater financial security and independence.

New York Times

Mark Raymond Jr., the national outreach coordinator at ABLE Today, emphasized the significance of the upcoming changes, stating, “This is a huge change for our community.” The expansion is anticipated to enhance awareness and utilization of ABLE accounts, ultimately improving the financial landscape for disabled individuals.

New York Times

While the expansion of ABLE accounts has been largely welcomed, some critics argue that the slow growth of these accounts over the past decade indicates a need for more robust outreach and education efforts. They contend that without adequate support and information, many eligible individuals may remain unaware of their options.

New York Times

As the implementation date approaches, advocacy groups and state treasurers are expected to ramp up efforts to inform potential beneficiaries about the new eligibility rules and the benefits of ABLE accounts. This initiative aims to ensure that the expanded access translates into meaningful financial support for disabled Americans.

New York Times

• “This is a huge change for our community,” — Mark Raymond Jr., National Outreach Coordinator, ABLE Today.

New York Times