For years, one of the most frustrating limitations of ABLE accounts was a single rule: to be eligible, your disability had to have begun before your 26th birthday. That restriction locked out millions of Americans who developed disabilities later in life, whether through a chronic illness, a serious accident, a mental health condition, or injuries sustained during military service.
As of January 1, 2026, that has changed. The ABLE Age Adjustment Act, which amends Section 529A of the Internal Revenue Code, raised the disability onset age for ABLE account eligibility from 26 to 46. It is one of the most significant updates to disability savings law since ABLE accounts were first introduced in 2014.
If you or a loved one have a disability that began before age 46, now is a good time to understand what this change means and how an ABLE account might fit into your broader financial and estate plan.
What Is an ABLE Account?
ABLE accounts, established through the federal Achieving a Better Life Experience Act, are tax-advantaged savings accounts designed specifically for individuals with disabilities. They work somewhat like 529 college savings accounts, but are intended to cover a wide range of disability-related needs rather than education expenses alone.
The core appeal of an ABLE account is straightforward. Most public benefit programs, including Supplemental Security Income (SSI) and Medicaid, come with strict asset limits. For SSI, that limit is $2,000 in countable resources for individ. For someone managing a disability, that cap can make it nearly impossible to build any meaningful savings without losing access to benefits they depend on.
ABLE accounts offer an additional resource. Funds held in an ABLE account, up to $100,000, are not counted as a resource for SSI eligibility purposes. Medicaid eligibility is also not affected by ABLE account balances, regardless of the total amount saved.
In 2026, the annual contribution limit is now $20,000, and such contributions are welcome from the account owner, family members, friends, or even a special needs trust. For individuals with disabilities who are employed and not enrolled in a workplace retirement plan, additional contributions above the standard annual limit may be permitted, up to the equivalent of their annual earned income or the federal poverty level, whichever is lower. Investment growth within the account is federal income tax-free when withdrawals are used for qualified disability expenses.
The 2026 Age Expansion: Who Becomes Newly Eligible?
The ABLE Age Adjustment Act does not change what an ABLE account is or how it works. What it changes is who can open one.
Under the original law, eligibility depended on whether a person’s disability began before their 26th birthday. That requirement excluded a wide population:
- Adults who developed chronic illnesses or autoimmune conditions in their late twenties or thirties
- Individuals who experienced disabling injuries in adulthood
- People diagnosed with serious mental health conditions after their mid-twenties
- Many veterans whose disabilities arose from military service
Effective January 1, 2026, individuals whose disability began before age 46 may now qualify, regardless of their current age. An adult in their fifties or sixties whose disability first arose at age 38, for example, is now potentially eligible to open an account. Researchers estimate that this expansion could make approximately six million additional Americans eligible nationwide, including roughly one million more veterans with disabilities.
The two eligibility criteria that still apply under the expanded rules are: (1) the disability must have first occurred before the individual’s 46th birthday, and (2) the disability must be severe enough to meet the Social Security Administration’s standard of resulting in marked functional limitations expected to last at least twelve months.
Individuals who currently receive SSI or Social Security Disability Insurance (SSDI) based on disability automatically satisfy the severity requirement. Those who do not receive these benefits can still qualify by obtaining a signed certification from a licensed physician documenting that the disability meets the SSA’s definition and that it began before age 46.
Massachusetts Residents: The Attainable Savings Plan
Massachusetts launched its ABLE program, the Attainable Savings Plan, in 2017. It is administered by the Massachusetts Educational Financing Authority (MEFA) and managed by Fidelity Investments. Massachusetts residents who qualify under the newly expanded eligibility rules can open an Attainable account directly, without needing to go through a complex legal process.
The Attainable Savings Plan allows qualifying individuals to accumulate up to $100,000 without affecting SSI eligibility, and up to $500,000 without affecting Medicaid eligibility. Asset-based fees range from approximately 0.20% to 0.84% depending on the investment portfolio selected, and there is no annual maintenance fee. Importantly, note that unlike many other state ABLE programs, Attainable accounts are not FDIC insured.
One thing to keep in mind is that only one ABLE account is permitted per individual. If a second account is opened inadvertently, the funds in it will likely be treated as countable assets by means-tested programs, which could affect benefit eligibility.
What to Do If You May Now Qualify
If you or a family member may be newly eligible under the expanded age rules, a few practical steps are worth taking now.
Start by confirming that the disability onset occurred before age 46. If you currently receive SSI or SSDI benefits based on disability, that history can generally serve as documentation. If you do not receive those benefits, a signed statement from a licensed physician confirming the disability, its onset age, and its severity will be needed.
From there, comparing state ABLE programs is worthwhile. While Massachusetts residents can enroll through the Attainable Savings Plan, most ABLE programs are open to non-residents as well. Factors to compare include available investment options, fee structures, debit card access, and any state-specific tax benefits for Massachusetts residents making contributions.
Finally, consider how an ABLE account fits within your overall financial and estate planning picture. This might include:
- Special needs trusts
- Medicaid planning
- Other aspects of elder or disability law
Coordinating these tools is important. Getting the structure right at the outset is far easier than untangling errors later, particularly when public benefit eligibility is at stake.
Our Massachusetts Estate Planning Attorneys Can Help
At Roark & Mansur Law, PLLC, we work with families throughout the Merrimack Valley, Greater Lowell, and southern New Hampshire who need disability planning alongside broader estate planning and elder law goals. The 2026 expansion of ABLE account eligibility is a meaningful development for many families we serve, and we welcome the opportunity to help you understand whether and how it applies to your situation.
To schedule a complimentary 30-minute consultation, contact our office today.
This blog is for general informational purposes only and does not constitute legal advice. You should consult with a qualified attorney regarding your specific circumstances.