Beginning January 1, 2026, an estimated 6.1 million more Americans will be eligible to open and contribute to Achieving a Better Life Experience (ABLE) accounts, according to National Disability Institute.
ABLE accounts are tax-advantaged investment accounts designed for Americans with disabilities. Created by Congress in 2014, ABLE accounts allow beneficiaries to save for qualified expenses like education, housing, health care and more without affecting their Medicaid or Social Security income eligibility.
Previously, beneficiaries had to have a qualifying medical condition that began before their 26th birthday, but that cut-off rises to age 46 as of January 1 due to the ABLE Age Adjustment Act passed in 2022. The expanded age requirement brings the total number of Americans eligible to open ABLE accounts up to around 14 million, per NDI’s estimates.
ABLE accounts are “a powerful wealth planning, financial and tax planning vehicle,” Juliana Crist, head of ABLE programs at Vestwell, a financial technology company that manages 19 of the country’s ABLE plans, tells CNBC Make It. Crist describes it as “kind of a super-powered Roth” individual retirement account.
As with Roth IRAs, contributions to ABLE accounts are made with after-tax dollars. Beneficiaries can invest the money in a portfolio which grows tax-free, and qualified withdrawals are not subject to income taxes. But with ABLE accounts, beneficiaries can set aside more money per year and can use the funds whenever they want, rather than needing to wait until they hit a certain age.
ABLE account withdrawals for qualified expenses are not taxed as income. However, withdrawals for non-qualifying expenses are subject to income tax and a 10% penalty.
Account holders can have up to $100,000 saved in an ABLE account without losing access to Supplemental Security Income and Medicaid benefits. Individuals with savings exceeding $2,000 in regular savings or other investment accounts risk losing those benefits.
Here’s how ABLE accounts work and who can open one.
Eligibility requirements and contribution limits
ABLE accounts are available to U.S. citizens in all 50 states who are either eligible to receive Supplemental Security Income or Social Security Disability Insurance or can self-certify that they have a qualifying medical condition.
“A lot more people can qualify for an ABLE account than realize it,” Crist says. “People hear that this is an account for people with disabilities, and that person might actually have a qualifying medical condition, but they don’t think of it as a disability … a lot of our eligible people just don’t realize that this could be a tool they could even use.”
To self-certify, individuals must have a written diagnosis of a qualifying condition signed by a licensed physician that also confirms the onset of the condition was before the individual’s 46th birthday.
Qualifying conditions include blindness, as defined by the Social Security Administration, along with a variety of other physical and mental conditions such as Autistic Spectrum Disorder and Attention Deficit/Hyperactivity Disorder. Individuals do not have to provide proof of diagnosis when opening an ABLE account, but they need to certify that they have one, according to ABLE National Resource Center.
Beneficiaries can contribute up to $20,000 a year into an ABLE account in 2026. Individuals who work but do not contribute to a workplace retirement plan can contribute an additional amount equal to the individual poverty threshold — $15,650 in 2026 — or up to their employment earnings, whichever is less. That limit rises to $19,550 for Alaska residents and $17,990 for Hawaii residents in 2026.
Virtually anyone can contribute to a beneficiary’s ABLE account including parents and other family members or employers. But total contributions may not exceed the annual limit.
How to choose the best ABLE account for you
Nearly every state and Washington, D.C. sponsor ABLE accounts and most allow out-of-state participation, according to ABLE NRC. Four states — Idaho, North Dakota, South Dakota and Wisconsin — don’t have their own plans. Depending on where you live and your personal financial situation, it may make sense to shop around between different states’ plans — a search which could benefit from the help of a financial professional.
If you’re looking to open an ABLE account, Crist suggests starting your search with your home state’s plan if one is available. That’s because some states offer state income tax deductions for ABLE account contributions.
Plus, “sometimes it’s easier and more familiar to be able to reach out to a person in your own backyard if you have questions or you need support,” she adds.
From there, you’ll want to compare investment options and costs for different ABLE accounts. Generally, ABLE accounts have management fees that can run around $30 a year, Crist says. The plans also may charge a fee equal to 0.1% to 0.3% of assets in your account she says. Some plans offer more investment options than others, which could be a deciding factor.
“Some states have much larger investment menus, like 15 options to choose from, as opposed to some states only offer four investment options to choose from — simple versus complex, so that can appeal to different types of savers and investors,” Crist says.
If you want a debit card attached to your account, some plans offer that as well, but not all, she adds.
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