Updated: September 5, 2025
ABLE accounts, introduced through the Achieving a Better Life Experience (ABLE) Act, are specialized savings accounts intended to better align working incentives with working realities for eligible individuals across the disabled population.
Modeled loosely after 529 college savings accounts, ABLE accounts allow individuals to save up to $100,000 (or more, depending on the state) without affecting eligibility for SSI, Medicaid, and other means-tested programs. They offer:
- Tax-free growth on investments
- Tax-free withdrawals for qualified expenses
- Exemption from asset limits for SSI (up to $100,000) and Medicaid (no limit)
With new changes from the OBBBA taking effect over the next few years, these accounts are poised to become even more powerful tools for individuals with disabilities.
Takeaways
- The One Big Beautiful Bill Act (OBBBA) and the ABLE Age Adjustment Act are introducing significant changes to ABLE accounts, expanding eligibility and increasing contribution opportunities.
- The OBBBA, effective July 4, 2025, increases the annual contribution limit to $19,000, makes the ABLE-to-Work provision and 529 rollovers permanent, and makes ABLE account contributions eligible for the Saver’s Credit.
- Starting January 1, 2026, the ABLE Age Adjustment Act raises the eligibility age for ABLE accounts from 26 to 46.
- In 2027, the Saver’s Credit for ABLE account contributions will become more generous, with increased maximum eligible contributions and credit amounts.
- These changes to ABLE accounts aim to provide greater financial independence and inclusion for millions of Americans with disabilities, making it worthwhile for individuals to revisit their ABLE eligibility.
