Quality Trust spoke with Jody Ellis of the National ABLE Resource Center (ABLE NRC) about major changes to ABLE accounts taking effect in 2026 and what they mean for people with disabilities and their families.
Q: The eligibility age for ABLE accounts is increasing from 26 to 46 in 2026. Why is this change such a major turning point for people with disabilities?
Jody Ellis: This is the largest expansion of ABLE eligibility since the passage of the Stephen Beck Jr. Achieving a Better Life Experience Act of 2014. Beginning in 2026, millions of additional people whose disability onset occurred before age 46 will be eligible to open an ABLE account. That dramatically expands access to a savings and investment tool that protects critical public benefits while allowing people to build financial security.
For many people with disabilities, this change represents a shift from being forced to “spend down” assets to being able to “save up.” That’s a profound turning point.
Q: Disability advocates have pushed for this expansion for years. What finally made this policy shift possible now?
Ellis: The ABLE age expansion was included in the SECURE 2.0 Act of 2022, which was part of a broader federal spending package passed in December 2022. It took sustained advocacy and bipartisan support to make it happen.
Importantly, lawmakers saw real success stories. ABLE account owners have used their accounts to save for housing, assistive technology, education, and even retirement — all while maintaining Medicaid and SSI. Those lived experiences helped demonstrate that ABLE works and deserves to grow.
Q: An estimated 6 million additional people are expected to become eligible. Who are the newly included populations you’re most concerned about reaching?
Ellis: We are especially focused on individuals whose disabilities began between ages 26 and 45. That includes people with chronic illness, mental health conditions, traumatic brain injuries, multiple sclerosis, muscular dystrophy, and veterans with service-related disabilities.
We also want to reach healthcare providers, social workers, financial counselors, and family members who can help spread the word. Many people don’t realize that you can qualify for an ABLE account even if you are not currently receiving Social Security disability benefits, as long as you meet the disability criteria.
Q: For adults who acquire disabilities later in life—through illness, injury, or military service—how does this change reshape their financial options?
Ellis: Before this expansion, many people whose disabilities began after age 26 were shut out of ABLE entirely. Now, they will have access to a tax-advantaged savings account that protects eligibility for means-tested benefits.
ABLE accounts offer flexibility that traditional retirement accounts do not. Funds can be withdrawn at any time for qualified disability expenses without tax penalties, which is critical for people whose needs may change over time.
Q: Many people are afraid to save money because of the risk of losing SSI or Medicaid. How do ABLE accounts protect people from that penalty?
Ellis: That fear is real. Programs like Supplemental Security Income (SSI) typically limit countable assets to $2,000. That makes it extremely difficult to build savings.
ABLE accounts change that. Up to $100,000 in an ABLE account is not counted as a resource for SSI, and ABLE savings do not affect Medicaid eligibility. In fact, total account balances in many state plans can exceed $500,000 without jeopardizing Medicaid. Withdrawals for qualified disability expenses are also not counted as income for these programs.
This asset protection is what makes ABLE such a game changer.
Q: In 2026, the annual contribution limit will rise to $20,000, with additional allowances for some working individuals. How does this affect long-term financial security?
Ellis: The increased contribution limit strengthens ABLE as a long-term financial planning tool. Additionally, under the ABLE to Work provision, employed account owners who do not participate in an employer-sponsored retirement plan may be able to contribute significantly more — potentially up to $35,650 in 2026, depending on income and location.
This gives working individuals with disabilities a meaningful opportunity to build savings for housing, retirement, and future needs without risking their benefits.
Q: ABLE accounts can now accept rollovers from 529 college savings plans and remain eligible for the Saver’s Credit. Why are these provisions important?
Ellis: Allowing rollovers from 529 plans provides flexibility for families whose educational plans may change. It ensures those funds can still be used in a way that supports the individual with a disability.
Maintaining eligibility for the Saver’s Credit also incentivizes low- and moderate-income workers to contribute to their ABLE accounts, further strengthening long-term financial stability.
Q: Despite the benefits, many eligible people still don’t open ABLE accounts. What are the biggest barriers—and how is ABLE NRC addressing them?
Ellis: The biggest barriers are lack of awareness, fear of losing benefits, limited financial resources, perceived complexity of enrollment, and concerns about Medicaid estate recovery.
At ABLE NRC, we provide free decision guides, state plan comparison tools, webinars, and step-by-step enrollment resources at AbleNRC.org. We also work with community partners and ABLE ambassadors who share real-life success stories to build trust and understanding.
Q: With ABLE programs available in 46 states and D.C., what should individuals consider when choosing a state ABLE plan?
Ellis: While ABLE plans share core features — tax-free investment growth and benefit protection — they vary in important ways. Individuals should compare state tax advantages, investment options, account balance limits, fees, debit card availability, and whether out-of-state residents can enroll.
More than 30 states allow non-residents to open accounts, giving people flexibility to choose the plan that best fits their needs.
Q: For readers who may be unfamiliar, what exactly is an ABLE account?
Ellis: ABLE stands for “Achieving a Better Life Experience.” These accounts are specifically designed for people with disabilities. They allow individuals to save and invest money tax-free for qualified disability expenses, while protecting eligibility for public benefits like SSI and Medicaid.
The two most significant advantages are tax-free growth and asset protection.
Q: Looking ahead, is this expansion the final step—or part of a broader effort to modernize disability and financial policy in the U.S.?
Ellis: This expansion is a major milestone, but there is still work to do. Some states have eliminated Medicaid clawback provisions, but federally, ABLE accounts are not yet fully protected from Medicaid estate recovery after death. There are also limits on receiving large lump-sum inheritances.
ABLE has already transformed how people with disabilities think about savings and financial independence. The goal now is to continue strengthening the policy so it fully delivers on its promise of economic empowerment.
For more information about ABLE accounts and eligibility changes taking effect in 2026, visit AbleNRC.org.