ABLE Account Expansion Will Benefit Millions of Americans

Last December marked the 10th anniversary of the ABLE Act. Under the provisions of ABLE (an acronym for Achieving a Better Life Experience), eligible individuals and families in Illinois can establish investment accounts to set aside as much as $19,000 a year, up to a total of $100,000, which they can use for education, housing, assistive technology, and other needs of people with disabilities.

These amounts include contributions from the account owner, family, friends and other sources. ABLE investment growth is not taxable and doesn’t count as income for taxes if the funds are used to pay for qualified disability expenses.

Currently, to be eligible for an ABLE account, a person’s physical or mental disability must have begun before the age of 26 (although an ABLE account can be opened at any age). On January 1, 2026, the ABLE Age Adjustment Act will expand eligibility to include people who have a disability that began before age 46.

This expansion will allow another estimated six to eight million people (including as many as one million veterans) to be eligible for ABLE accounts.

Generally, an adult with disabilities who has more than $2,000 in countable assets is ineligible for public assistance programs such as Medicaid and Supplemental Security Income (SSI).

But the ABLE Act allows disabled individuals and their families to save money in tax-free accounts without losing access to federally funded benefits based on financial need because ABLE accounts are exempt from countable income.

The result is that people with disabilities can save and invest for the future without jeopardizing benefits like Medicaid, the Supplemental Nutrition and Assistance Program (SNAP) and SSI.

Federal legislation allows states to establish these kinds of accounts, and all but four states (Idaho, North Dakota, South Dakota, and Wisconsin) have ABLE programs.

Peter V. Berns, CEO of The Arc, one of the largest national organizations advocating for people with intellectual and developmental disabilities, characterized the ABLE Act this way: “The ABLE Act is about giving people with intellectual and developmental disabilities the opportunity to achieve their dreams. Families are looking for ways to finance things like an apartment, or a ride to work, or additional educational opportunities after high school that don’t jeopardize other necessary services provided by federal programs. This (act) creates a tool for families that could lead to a more independent and fulfilling life.”

We at Nash Disability Law in Chicago supported the original ABLE account legislation in Illinois and we applaud this upcoming expansion.

If you or someone you care about is eligible for an ABLE account, we encourage you to look into this opportunity to see if it could be financially helpful for your individual circumstances.