Expanded Eligibility for ABLE Accounts Opens Tax-Advantaged Savings to Millions More

Starting this year, an estimated 6 million additional individuals with disabilities gained access to ABLE accounts following an expansion of eligibility criteria. The age threshold for disability onset has been raised from 26 to 46 years, significantly broadening the pool of potential beneficiaries.

These tax-advantaged accounts offer triple benefits: contributions grow tax-free, withdrawals for qualified disability expenses remain untaxed, and funds can be used flexibly across essential categories including healthcare, education, and transportation. While annual contribution limits persist, exceptions allow higher deposits for employed individuals lacking employer-sponsored retirement plans.

The National Disability Institute confirms this policy shift marks a substantial step toward financial inclusion. ABLE accounts now serve as a critical tool for long-term planning, enabling families to invest either conservatively in cash or pursue growth through market exposure—all while maintaining tax advantages.