Big Changes Ahead for ABLE Accounts
ABLE accounts have been helping individuals with disabilities save for the future without jeopardizing essential benefits like SSI and Medicaid since 2014. Recent legislation now makes these accounts even more powerful and accessible.
2025: A Boost from the OBBBA
The One Big Beautiful Bill Act (OBBBA), signed in July 2025, introduced several immediate enhancements:
- Annual contribution limits rise to $19,000.
- The ABLE-to-Work provision and 529 rollovers become permanent.
- Contributions are now eligible for the Saver’s Credit.
These changes give families more flexibility, more opportunities to save, and more incentives to plan for the future.
2026: Millions More Eligible
Starting January 1, 2026, the ABLE Age Adjustment Act raises the eligibility age from 26 to 46. This opens the door for many adults who develop a disability later in life, whether from illness, injury, or other circumstances, to take advantage of ABLE accounts.
2027: Even More Incentives
In 2027, the Saver’s Credit for ABLE contributions becomes more generous. Maximum contributions and credit amounts increase, giving account holders an even stronger incentive to save for qualified expenses like education, housing, healthcare, and more.
For many families, these accounts offer a chance to plan ahead, save, and gain financial independence, all while protecting access to vital government benefits. If you’ve explored ABLE accounts in the past, or weren’t previously eligible, these changes make it worth revisiting your options.
As always, rules and contribution limits can vary by state, so working with a professional familiar with your state’s program can help ensure you get the most from your ABLE account.
