February 23, 2026
New Rules for ABLE Accounts: More People Can Soon Save for Their Future
As a Special Needs Certified Financial Planner®, I often see how difficult it is for families to save money without losing their government help. For a long time, many people were left out of a great tool called an ABLE account because of their age. But I have some exciting news: starting January 1, 2026, millions more people will finally be able to use these accounts to build a better life.
What is an ABLE Account?
An ABLE account is a special type of savings and investment account for people with disabilities. It was created by a law called the ABLE Act in 2014. These accounts work a lot like a college savings plan. You put money in after taxes, and that money can grow over time. As long as you spend the money on things related to your disability, you don’t have to pay taxes on the growth.
One of the best parts about an ABLE account is that it protects your benefits. Usually, if you have more than $2,000 in the bank, you could lose your Supplemental Security Income (SSI) or Medicaid. However, you can save up to $100,000 in an ABLE account without it counting toward that limit.
If you are wondering how this new law fits into your specific financial situation, I am here to help. Please contact me today for a CFP® consultation to see how we can maximize your savings while protecting your benefits.
The Big Change: Moving the Age from 26 to 46
Until recently, you could only open an ABLE account if your disability started before you turned 26. This was hard for people who became disabled later in life, such as veterans or people with certain illnesses like Multiple Sclerosis.
The "ABLE Age Adjustment Act" changes all of that. Starting in 2026, the age limit moves from 26 to 46. This means if your disability began anytime before you turned 46, you will be eligible. Experts think this change will help about 6 million more Americans finally get the financial freedom they deserve.
Why This Matters for You
This expansion is a huge deal because it recognizes that a disability can happen at any age. It gives more people the chance to:
- Save for emergencies without being "penalized" by the government.
- Invest for long-term goals like buying a home.
- Have more control over their own money.
What Can You Use the Money For?
The government is very flexible about how you spend your ABLE funds. The money must go toward "qualified disability expenses," but that covers a lot of ground.
Examples of Qualified Expenses:
- Housing and Food: Rent, mortgage payments, and groceries.
- Health and Wellness: Medical care, therapy, and health insurance.
- Moving Around: Transportation, car modifications, and bus passes.
- Learning and Working: School tuition, job training, and technology.
- Daily Support: Personal assistants or emergency costs.
Managing these expenses alongside other tools like Special Needs Trusts can be complicated.
How to Get Ready for 2026
Even though the change doesn't happen until January 1, 2026, you should start planning now. Here are four steps I recommend:
- Look into State Programs: Every state has its own ABLE program. You don’t always have to use your own state's plan, so it's smart to compare them to see which has the lowest fees.
- Gather Your Paperwork: You will need to prove that your disability started before age 46. If you don't already get SSI or SSDI, you might need a signed note from your doctor.
- Set Your Goals: What do you want to save for? Is it a new wheelchair, a down payment on an apartment, or just a "rainy day" fund? Knowing your goal helps you choose the right investment options.
- Check Your Other Benefits: Make sure your ABLE account works well with your Medicaid or SNAP benefits.
The new rules for 2026 open a door to financial independence for so many people who have been waiting for years. I am excited to see how this change will help my clients live more secure and happy lives.
If you are ready to start preparing for these 2026 changes, I would love to guide you through the process. Click here to schedule a meeting with a Special Needs Certified Financial Planner® so we can build your future together.