A federal change is opening tax-advantaged savings accounts to many more people with disabilities. Known as the ABLE Age Adjustment Act, it took effect January 1, 2026, and widens who can qualify. For families building a special needs plan, it adds a useful new option. It also expands ABLE access to many veterans whose disabilities began later in life.
What Changed
ABLE accounts let people with disabilities save money without losing access to important benefits. Until now, eligibility was limited to those whose disability began before age 26. The new law raises that to before age 46. Disability often comes with extra costs, and the old age limit left many people unable to use this savings tool.
As the ABLE National Resource Center explains, this opens accounts to millions more people, including many veterans, starting in 2026.
To qualify, a person’s disability must have begun before age 46 and meet the Social Security Administration’s standard for a severe, lasting impairment. They do not need to already receive benefits.
Why ABLE Accounts Matter
For people on means-tested benefits, saving money has always carried a risk. Build up too much, and you can lose coverage. ABLE accounts solve part of that problem.
- Up to $100,000 in an ABLE account does not count against the SSI resource limit.
- ABLE savings generally do not count for Medicaid, SNAP, HUD, or financial aid.
- Investment growth is tax-free when used for qualified disability expenses.
- Funds can cover housing, education, transportation, health care, and more.
That combination lets a person save and stay eligible for the support they rely on. The account is always owned by the person with the disability, though a trusted representative can help manage it.
How ABLE Fits Into Special Needs Planning
An ABLE account is a tool, not a full plan. It works best alongside the other pieces a family already uses. A special needs planning approach often combines:
- An ABLE account for everyday flexibility and modest savings.
- A special needs trust for larger assets and long-term security.
- A plan for who manages funds if the person needs help.
- Coordination so benefits are protected across the board.
Each tool has limits. An ABLE account caps how much can go in each year, while a trust can hold much more. Used together, they cover different needs. A trust can also handle assets that would push someone over the ABLE limit, such as a legal settlement or an inheritance.
Getting Ready to Open One
If the new rules apply, a few steps help. Confirm the disability began before age 46, and ask a doctor to document it if needed. Then compare state ABLE plans, since many accept out-of-state residents. A special needs planning lawyer can help you decide how an ABLE account and a trust should work together for your family.
Estate Planning Pros builds special needs planning that protects benefits while giving a person room to save and live well. If the new eligibility rules might apply to your family, this is a good time to review your plan. Talk with an attorney about how an ABLE account fits alongside a trust and your loved one’s benefits.