ABLE accounts expand disability savings eligibility to age 46

ABLE accounts, created by the Achieving a Better Life Experience Act in 2014, have helped Americans with disabilities to save and invest since 2016. The accounts allow individuals to save money beyond the $2,000 limit usually associated with benefits like Supplemental Security Income (SSI) and Medicaid. Paul Safarik, a 32-year-old man with Down syndrome from Lincoln, Nebraska, is one of many who has benefited from an ABLE account. He has been able to buy things like a treadmill for exercise and braces for his teeth without risking his government assistance. His mother says the account gives them peace of mind, allowing Paul to work and save. Starting in 2026, ABLE accounts will be available to those diagnosed with disabilities before the age of 46, expanding access to about 6 million more people, including veterans. Currently, around 8 million qualify for these accounts, which allow average balances of $11,000 to $12,000 without affecting most benefits. Contributions to ABLE accounts can come from anyone, including the account owner, family, and friends, with limits set at $19,000 per year in 2025. If the owner is employed, they can also add more money based on their income. The accounts offer tax advantages, as earnings remain tax-free if used for qualifying expenses. Despite the potential benefits, many people are still unaware of ABLE accounts. Currently, less than 1% of eligible individuals have them. The National Association of State Treasurers is working to raise awareness, emphasizing that the accounts can help individuals save for their futures without jeopardizing government benefits. To know if someone qualifies for an ABLE account, resources like ABLE Today and the ABLE National Resource Center can provide guidance. Qualifications include having a disability that began before age 26, being eligible for SSI or Social Security Disability Insurance, or having a diagnosed disability. As the 2026 expansion approaches, families can start preparing by learning about the process and considering setting aside money for future contributions.