An estimated 6.1 million more Americans will be eligible to open and contribute to an Achieving a Better Life Experience (ABLE) account starting January 1, 2026, according to the National Institute on Disabilities.
ABLE accounts are tax-advantaged investment accounts designed for Americans with disabilities. Created by Congress in 2014, ABLE accounts allow beneficiaries to save for qualified expenses such as education, housing, and health care without affecting their Medicaid or Social Security income eligibility.
Previously, recipients had to have a qualifying medical condition that began before their 26th birthday, but the ABLE Age Adjustment Act of 2022 raised that threshold to age 46 as of Jan. 1. The expanded age requirement would bring the total number of Americans eligible to open an ABLE account up to about 14 million, according to NDI estimates.
Julianna Crist, director of ABLE programs at Bestwell, a financial technology company that manages 19 ABLE plans across the country, told CNBC Make It that ABLE accounts are “powerful estate planning, financial and tax planning tools.” Crist describes it as a “super-powerful Roth-like” individual retirement account.
Similar to a Roth IRA, contributions to an ABLE account are made with after-tax dollars. Beneficiaries can invest their funds in a growing portfolio tax-free, and qualified withdrawals are not subject to income tax. But with an ABLE account, beneficiaries don’t have to wait until they reach a certain age and can put more money aside each year and use the funds whenever they want.
Withdrawals from your ABLE account for qualified expenses are not taxed as income. However, withdrawals for non-qualified expenses are subject to income tax and a 10% penalty.
Account holders can save up to $100,000 in their ABLE accounts without losing access to additional security income and Medicaid benefits. Individuals with more than $2,000 in savings in savings or other investment accounts risk losing these benefits.
Here’s how an ABLE account works and who can open one.
Eligibility requirements and contribution limits
ABLE accounts are available to U.S. citizens in all 50 states who are eligible to receive Supplemental Security Income or Social Security Disability Insurance or who can self-certify that they have a qualifying medical condition.
“More people can qualify for an ABLE account than you might think,” Crist says. “People hear that this is an account for people with disabilities, and that person may actually have a qualifying medical condition, but they don’t think of it as a disability…A lot of people who qualify don’t realize that this could be a tool available to them as well.”
Self-certification requires a written medical certificate of a qualifying condition signed by a qualified physician, which also confirms that the onset of the condition occurred before the individual’s 46th birthday.
Eligible conditions include blindness as defined by the Social Security Administration, as well as a variety of other physical and mental conditions, such as autism spectrum disorder and attention-deficit/hyperactivity disorder. According to the ABLE National Resource Center, individuals are not required to submit a medical certificate when opening an ABLE account, but they must prove they have a medical certificate.
Beneficiaries can contribute up to $20,000 per year to the ABLE account in 2026. Individuals who work but do not contribute to a workplace retirement plan can make additional contributions equal to the individual’s poverty threshold ($15,650 in 2026) or their employment income, whichever is less. This limit increases to $19,550 for Alaska residents and $17,990 for Hawaii residents in 2026.
Virtually anyone can contribute to a beneficiary’s ABLE account, including parents, other family members, and employers. However, the total contribution cannot exceed the annual limit.
How to choose the best ABLE account for you
Nearly every state and Washington, D.C., sponsors an ABLE account, and most allow out-of-state participation, according to the ABLE NRC. Four states do not have plans of their own: Idaho, North Dakota, South Dakota and Wisconsin. Depending on where you live and your personal financial situation, it may make sense to look into plans in different states. This could be with the help of a financial professional.
If you’re considering opening an ABLE account, Crist recommends starting your search with your state’s plan, if one is available. This is because some states offer a state income tax deduction for contributions to ABLE accounts.
Additionally, “if you have questions or need support, sometimes it’s easier and more approachable to reach out to someone in your own backyard,” she added.
From there, you can compare the investment options and costs of different ABLE accounts. ABLE accounts typically have an administration fee of about $30 per year, Crist said. The plan can also charge fees equal to 0.1% to 0.3% of the assets in the account, she says. Some plans offer more investment options than others, and that can be a deciding factor.
“Some states offer much larger investment menus, with 15 options to choose from, while others offer only four investment options, some simple and some complex, appealing to different types of savers and investors,” Crist says.
If you want to attach a debit card to your account, some plans offer that as well, but not all, she added.
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