ABLE Accounts: A Financial Breakthrough for Individuals with Disabilities
Unlocking Financial Freedom Without Losing Critical Benefits
In a groundbreaking approach to financial planning, ABLE accounts have emerged as a crucial tool for individuals with disabilities — offering a lifeline that preserves essential government benefits while providing much-needed financial flexibility.
The Benefit Trap: A Critical Challenge
For years, individuals receiving public benefits like Supplemental Security Income (SSI) faced a nearly impossible financial situation. Strict asset limits of just $2,000 and income rules that dramatically reduced benefits created a system that effectively penalized financial growth and independence.
“If somebody else is paying for your rent or even if you’re living with somebody who’s providing you with free housing, you lose a third of your SSI benefit,” explains Harry Margolis, elder law expert and author of Get Your Ducks in a Row.
What Makes ABLE Accounts Different?
ABLE (Achieving a Better Life Experience) accounts represent a revolutionary financial instrument designed to remove systemic barriers to independence for people with disabilities.
Key Features
Asset Protection: Funds in the account are not counted against benefit eligibility
Income Flexibility: Contributions do not reduce SSI or other critical benefits
Broad Usage: Funds can be used for disability-related expenses such as housing, healthcare, transportation, and education
Expanding Opportunities: The 2026 Age Limit Change
A significant upcoming change will dramatically expand access to ABLE accounts.
Currently limited to those whose disability began before age 26, the eligibility threshold will expand to age 45 starting January 1, 2026 — opening the door for millions more Americans to benefit from this financial tool.
Practical Limitations and Advantages
Annual Contribution Limit: $19,000 (adjusted annually)
Maximum Account Balance: $100,000 (without affecting SSI eligibility)
Unique Benefit: Can be used in conjunction with special needs trusts
Flexible Funding: Anyone — family, friends, or the individual — can contribute to an ABLE account
Real-World Impact: A Practical Example
Margolis illustrates the account’s power:
“If you put $1,500 monthly into an ABLE account for rent, the SSI recipient doesn’t lose their benefits. Similarly, providing spending money through an ABLE account avoids SSI reductions.”
Who Should Consider an ABLE Account?
Individuals receiving SSI or SSDI
People with disabilities who need flexible, protected financial support
Families seeking long-term, tax-advantaged planning options for loved ones with disabilities
Recent Improvements to ABLE Accounts
Two notable updates have strengthened the program:
529 Plan Rollovers: Permanent allowance for rolling over education savings (529 plans) into ABLE accounts
Higher Contribution Limits: Expanded limits for working individuals with disabilities
Key Takeaways
Preserve Benefits: Grow savings without losing critical government support
Flexible Funding: Multiple family members can contribute easily
Broad Expense Coverage: Use funds for housing, transportation, healthcare, and more
Upcoming Expansion: 2026 age-limit increase will extend eligibility to more individuals
Simple Setup: Available through state-specific financial institutions