Since January 1, 2026, a person can open an ABLE account if their disability began before age 46, up from the earlier cutoff of 26.
Families supporting an adult child or sibling with a disability face a bind. Government benefits such as Supplemental Security Income generally depend on keeping countable resources low, and a gift or inheritance placed in the person's name can put those benefits at risk. An ABLE account is built to relieve that pressure, and the expansion of eligibility means it now reaches a larger group of people. What does an ABLE account allow, and where do its limits begin?
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Who is eligible now
According to the Social Security Administration's Program Operations Manual, an ABLE account may be established by an eligible individual who is blind or disabled by a condition that began before the individual's 46th birthday. The same manual notes that before January 1, 2026, eligibility required the condition to begin before age 26.
This change reaches people whose disability arose in their late twenties, thirties, or early forties, who were previously outside the program. Adults in that group may now be able to open an account.
How the account is treated for benefits
For people who receive Supplemental Security Income, the central feature is how the balance is counted. The SSA's manual states that up to and including $100,000 of the balance in an ABLE account is excluded from the resources of the beneficiary. The amount by which a balance exceeds $100,000 is counted as a resource.
The SSA also does not count distributions from an ABLE account as income of the beneficiary. This allows the account to hold funds that would otherwise disqualify someone from benefits if held in an ordinary bank account.
Contributions
The annual limit for 2026 is $20,000, according to the SSA's manual. The ABLE National Resource Center states that investment growth is not taxed and does not count as income if the funds are used for qualified disability expenses.
A beneficiary who earns income and does not participate in an employer retirement plan may be able to contribute additional amounts up to their employment earnings, under a provision for beneficiaries who earn income. We have not stated the dollar limit here because the figure is published by the ABLE National Resource Center and we could not confirm it against an IRS source.
Rollovers from a 529 college savings plan into an ABLE account are permitted in limited amounts, according to the SSA's manual. The manual states that the contribution must be made within 60 days of the withdrawal, and that no rollover can have been made into the beneficiary's account within the prior 12 months. Details on how rollover amounts interact with annual limits are worth confirming with the plan and a tax professional.
What counts as a qualified expense
The SSA's manual lists categories of qualified disability expenses that include education, housing, transportation, employment training and support, assistive technology, health, funeral and burial, and basic living expenses. The breadth of that list is part of the account's usefulness, since the money is available for ordinary costs of living, not only medical needs.
The Medicaid payback rule
The principal trade-off is the payback provision. The SSA's manual states that upon the death of the beneficiary, funds remaining in the account, after payment of outstanding qualified disability expenses, must be used to reimburse the state for Medicaid benefits received, if the state files a claim. The ABLE National Resource Center adds that if the account owner did not receive Medicaid there is no payback, and that some states have laws limiting it.
For families thinking about legacy goals, this is the point where an ABLE account and a special needs trust are often compared. A trust can be designed to avoid or reduce payback in some circumstances, while an ABLE account offers simpler access to funds for the beneficiary. Many families use both.
A hypothetical example
Consider the Whitfields, a fictional Atlanta couple whose 38-year-old son developed a disabling condition at 35. Under the old age-26 rule he could not have opened an ABLE account. Under the 2026 rules he may qualify. They might ask whether a portion of their annual gifting should go to an ABLE account, whether a 529 balance left from his siblings' education could be moved, and how the account would sit beside a special needs trust in their estate plan. This example is hypothetical, and the right structure depends on his benefits, state rules, and the family's goals.
Could an ABLE account fit your family's plan?
Eligibility depends on the age of onset, benefit rules vary by program, and state plans differ in fees and investment options. The decision is rarely only about the account itself, since it connects to benefits, estate documents, and the way assets are titled.
Ben can help you see how an ABLE account fits alongside the rest of your planning.
Schedule a complimentary consultation with Ben Loughery.
*Ben Loughery is a CERTIFIED FINANCIAL PLANNER® and founder of Lock Wealth Management, based in Atlanta, GA. He specializes in retirement income planning, tax optimization, and helping clients build financial confidence at every stage of life.*
*This article is for educational purposes and is not tax, legal, or investment advice. Benefit rules are complex and vary by program and state.*
