ABLE Accounts 2026: More Can Benefit From Super-Powered

me Highlights:

Starting January 1, 2026, 6.1 million more Americans will be eligible to open and contribute to ABLE accounts, helping people with disabilities save for important expenses.
ABLE accounts work like a Roth IRA but allow larger contributions and flexible withdrawals, making them a powerful tool for long-term financial security.

Key Facts:

Beneficiaries can save up to $100,000 without affecting their Medicaid or Social Security benefits, while annual contributions can reach $20,000.
Most states allow nonresidents to enroll, but some in-state plans offer tax benefits, and fees generally range from $30 plus 0.1%-0.3% of account assets.

Background:

Beginning January 1, 2026, millions more Americans with disabilities will be able to open and contribute to Achieving a Better Life Experience (ABLE) accounts, following a major eligibility expansion under federal law.

According to estimates from the National Disability Institute (NDI), around 6.1 million additional people will become newly eligible, bringing the total potential number of eligible Americans to nearly 14 million.

ABLE accounts are tax-advantaged savings and investment accounts created by Congress in 2014 to help individuals with disabilities save for qualified expenses, such as education, housing, health care, and transportation, without jeopardizing access to critical benefits like Medicaid or Supplemental Security Income (SSI).

Until now, eligibility was limited to individuals whose qualifying disability began before age 26. That age threshold will rise to 46 as of January 1, 2026, as a result of the ABLE Age Adjustment Act passed in 2022.

Financial experts describe ABLE accounts as a powerful planning tool. Juliana Crist, head of ABLE programs at financial technology firm Vestwell, compares them to a “super-powered Roth IRA.” Like Roth accounts, contributions are made with after-tax dollars, investments grow tax-free, and qualified withdrawals are not subject to federal income tax. Unlike retirement accounts, however, ABLE funds can be used at any time and for a wide range of everyday living expenses.

For 2026, the standard annual contribution limit is $20,000. Eligible working beneficiaries who do not participate in an employer-sponsored retirement plan may contribute additional funds, up to the federal poverty level or their earned income, whichever is less.

ABLE accounts are available nationwide, with nearly every state and Washington, D.C. sponsoring a plan. Most states allow people from other states to open ABLE accounts, but some offer tax benefits if you join your home-state plan. Experts say it’s important to compare fees, investment options, and features like debit cards. Annual fees are usually about $30, with extra fees of 0.1% to 0.3% of the account balance.

Many people don’t know they qualify for ABLE accounts, especially if they have conditions like autism or ADHD. Starting in 2026, more people will be eligible, making ABLE accounts a useful way to save for the future.