Achieving a Better Life Experience (ABLE) accounts are special savings accounts for people with disabilities. Known as STABLE accounts in Ohio, these accounts help qualified individuals save money without losing eligibility for critical federal benefits like Medicaid and Supplemental Security Income (SSI) in most situations. The money saved in an ABLE account ($2 billion total in the last 10 years) can be used for various expenses related to the person’s disability, such as education, housing, transportation and medical care.
The funds in an ABLE account grow tax-free, and as long as the money is used for qualified disability expenses, it is not taxed when withdrawn. To qualify for an ABLE account, the individual must have a disability that began before the age of 26. Under the current rules, someone who becomes disabled after turning 26 is not eligible to open an ABLE account.
Raising the age from 26 to 46 in 2026
Starting January 1, 2026, the rules for ABLE accounts will change. The age limit for when a disability must begin will increase from 26 to 46. This change means more people will be eligible to open ABLE accounts, including veterans and individuals who develop disabilities later in life. It aims to benefit an additional 6 million people.
This expansion is significant because it allows more individuals to save money for their disability-related expenses without jeopardizing their eligibility for federal benefits. It also provides a greater opportunity for financial independence and security for people with disabilities.
Help available for addressing these changes
Navigating the changes to ABLE accounts can be complex, especially for families and individuals who are already managing various aspects of living with a disability. Consulting with an attorney experienced in legal matters regarding adults with disabilities and children with special needs can be vital.
An attorney can help set up an ABLE account and ensure it’s done correctly. They can also help families understand the new eligibility rules and how to maximize the benefits of an ABLE account. For example, an attorney can advise on strategies for contributing to the account, managing the funds, and using the money for qualified expenses.
Additionally, an attorney can help families plan for the future by integrating the ABLE account into a broader financial and estate plan. This can include setting up trusts, wills and other legal instruments to protect the financial well-being of the individual with a disability.