We’re starting to get more questions about ABLE accounts, especially with recent law changes dramatically expand who may qualify. Until now, very few clients met the strict eligibility criteria, so ABLE planning rarely came up. But beginning in 2026, the eligible population grows significantly, making this a good time to revisit how these accounts work and where they can fit into a financial plan.
This article provides a practical overview of ABLE accounts, who can open one, and situations where they may offer meaningful tax advantages.
What Is An ABLE Account?
An ABLE account (Achieving a Better Life Experience account) is a tax-advantaged savings vehicle for individuals whose disability began at an early age. Funds inside an ABLE account grow tax-deferred, and withdrawals are tax-free when used for Qualified Disability Expenses (QDEs). These expenses are broadly defined and can include medical costs, assistive technology, housing, transportation, personal care services, and more.
Who Is Eligible?
Eligibility depends on two key factors:
(1) the age at which the disability began
(2) how the disability is documented.
Age-of-Onset Rule
Historically, individuals qualified only if their disability began before age 26. However, beginning January 1, 2026, the threshold expands to before age 46. This change will make millions more individuals eligible.
Severity & Documentation Requirements
In addition to meeting the age-of-onset rule, individuals must meet the required disability standard in 1 of 2 ways:
- They are receiving SSDI (Social Security Disability Insurance) or SSI
- A licensed physician signs a disability certification stating that the individual has
- “marked and severe” functional limitations
- that began before age 46, and
- includes the relevant diagnosis.
For many people with conditions like MS, this may be achievable as long as the onset of symptoms falls before the age limit and the physician is willing to provide the required certification.
How ABLE Accounts Work
If eligible, here are the key rules and benefits to understand:
Contribution Limits
- 2025: up to $19,000 total from all sources
- 2026: limit increases to $20,000
Contributions are made with after-tax dollars (no federal deduction).
Tax Treatment
- Earnings grow tax-deferred
- Withdrawals are tax-free if used for Qualified Disability Expenses (QDEs)
Qualified Disability Expenses
QDEs are intentionally broad and can include expenses that support health, independence, or quality of life.
When an ABLE Account May Be Useful
For eligible individuals who expect ongoing disability-related expenses, an ABLE account can provide a modest but meaningful tax benefit. Even shifting a small amount each year from taxable savings into an ABLE account allows those dollars to grow tax-free when used for qualified expenses.
First Steps if You’re Considering an ABLE Account
Before opening an account, it’s important to confirm:
- The age at which the disability began, and
- Whether SSDI/SSI documentation or a physician-signed disability certificate is available.
Once those two items are clear, determining eligibility becomes straightforward, and we can assess whether an ABLE account fits into your broader financial strategy.
If you think you or a family member may qualify, we’re happy to walk through the details and help you evaluate whether an ABLE account makes sense for your situation.