A major expansion of ABLE accounts now allows up to 14 million individuals with disabilities to save and invest without jeopardizing Supplemental Security Income or Medicaid benefits. The change, effective January 2026, raises the age limit to 46 for new account holders.
- 14 million Americans now qualify for ABLE accounts due to expanded age eligibility
- Eligibility extends to individuals with disabilities acquired before age 26, regardless of current age up to 46
- Annual contribution limit is $18,000 (2026 level), with a lifetime cap of $500,000
- ABLE accounts are designed to protect SSI and Medicaid eligibility
- 44 states currently operate ABLE programs with varying investment structures
- Accounts fund qualified disability-related expenses without asset limit penalties
The number of Americans eligible to open ABLE (Achieving a Better Life Experience) accounts has surged to approximately 14 million, following a nationwide policy update that extended the age cap from 26 to 46. The change, implemented in January 2026, allows individuals with disabilities acquired before age 26 to establish accounts regardless of their current age, as long as they meet disability criteria established under the federal ABLE Act of 2014. These accounts are designed to help people with disabilities save for qualified expenses—such as education, housing, transportation, and personal support services—without losing access to critical public benefits. The expansion addresses long-standing concerns that savings could disqualify individuals from SSI or Medicaid, which have strict asset limits. By permitting tax-advantaged growth and withdrawals for approved expenses, ABLE accounts now serve as a financial bridge for a broader cohort of beneficiaries. Under the updated rules, individuals aged 46 and under who were diagnosed with a qualifying disability prior to age 26 may now open an ABLE account, regardless of their current income or employment status. Each account is subject to annual contribution limits of $18,000 (2026 federal level), with a cumulative lifetime cap of $500,000. States administer the programs, and 44 states currently offer ABLE plans with varying investment options and fees. The expansion is expected to significantly increase financial inclusion for young adults and middle-aged individuals with disabilities. Financial planners, disability advocates, and state agencies are reporting a surge in account inquiries and applications. The change also reinforces the broader goal of enabling greater economic independence while preserving access to essential safety net programs.