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

Resources for More Information

ABLE National Resource Center

Elder Law Answers