Millions of Americans with disabilities who were shut out of ABLE savings accounts can now open one. Since Jan. 1, 2026, people whose blindness or disability began before age 46, up from 26, are eligible for the tax-advantaged accounts, which let them save without losing Supplemental Security Income (SSI) or Medicaid, according to the Internal Revenue Service and the Social Security Administration.
The IRS updated its ABLE guidance on Nov. 6, a day after releasing its 2027 tax inflation adjustments. The changes come as many families plan year-end savings. A separate change takes effect in 2027: the Saver’s Credit for ABLE contributions will count up to $2,100 of contributions, up from $2,000, the IRS says.
What is an ABLE account?
ABLE accounts, created by the Achieving a Better Life Experience Act of 2014, are state-run savings and investment accounts for people with disabilities. Investment growth is tax-free, and withdrawals are tax-free when used for qualified disability expenses. The person with the disability owns the account, and anyone, including family and friends, can contribute.
Qualified expenses are broad. Social Security lists education, housing, transportation, employment training and support, assistive technology, health, prevention and wellness, financial management, legal fees, funeral and burial costs and basic living expenses.
Who qualifies for an ABLE account in 2026?
Under SSA guidance, the account owner must meet one of these conditions:
- Receives SSI based on blindness or a disability that began before age 46, or is in SSI suspense only because of excess income or resources.
- Receives Social Security disability insurance, childhood disability benefits or disabled widow’s or widower’s benefits based on a disability that began before 46.
- Is the subject of a disability certification stating the person is blind or has a physical or mental impairment causing marked and severe functional limitations that began before 46, with a signed physician’s diagnosis kept on file.
Conditions on SSA’s Compassionate Allowances list are deemed to meet the certification standard if they caused marked and severe limitations before 46. A person may have only one ABLE account. SSA notes that it does not decide ABLE eligibility; the state ABLE program does. The ABLE National Resource Center says the expansion reaches millions of people, including veterans, whose disabilities began between ages 26 and 46.
How much can be saved, and will it affect SSI or Medicaid?
For 2026, total yearly contributions are generally limited to $20,000, the IRS says. A beneficiary who works, and whose employer is not contributing to certain retirement plans for them, can add more: up to their pay or the prior year’s one-person federal poverty line. For 2026 that extra amount is $15,960 in the continental U.S., $19,950 in Alaska and $18,360 in Hawaii, according to SSA.
For SSI, Social Security ignores the first $100,000 in an ABLE account. If a balance above $100,000 pushes someone over the SSI resource limit, SSI payments are suspended, not ended, and Medicaid continues as long as the person is otherwise eligible. When the account owner dies, the state may file a claim on the remaining balance to recover Medicaid costs.
How do I open an ABLE account?
- Pick a plan. You can join any state’s plan that accepts out-of-state residents; the ABLE National Resource Center says 31 plans did so in 2026. Compare fees, investment options and state tax benefits with its plan guide and state program list.
- Gather information: the owner’s name, date of birth, address, Social Security or taxpayer ID number, ID, and bank details for the first deposit, per the ABLE NRC enrollment checklist.
- Confirm eligibility. Benefit recipients can use their SSI or SSDI eligibility; others self-certify, and the ABLE NRC offers a sample disability certification form. Keep the physician’s diagnosis on file.
- Choose a representative if needed. A parent, guardian, power-of-attorney agent or Social Security representative payee can open and manage an account for a minor or someone who cannot manage it.
- Tell Social Security. SSI recipients should report the account and any changes, and representative payees must follow SSA’s payee rules.
There is no enrollment deadline, but contribution limits apply per calendar year, so check your plan’s cutoff for 2026 deposits. Assistive technology is a qualified expense; see HNC’s guide to assistive technology programs and, for mobility aids and home medical equipment, compare suppliers before you buy. Workers on SSDI or SSI can also review HNC’s report on 2027 work rules.
Key Takeaways
- Since Jan. 1, 2026, people whose disability began before age 46 can open an ABLE account.
- The 2026 contribution limit is generally $20,000, with more allowed for some working beneficiaries.
- The first $100,000 does not count against SSI, and Medicaid continues even if SSI is suspended.
- Starting in 2027, up to $2,100 of contributions can count toward the Saver’s Credit.
- You can join any of 31 state plans that accept out-of-state residents, according to the ABLE NRC.
Frequently Asked Questions
Who is newly eligible for an ABLE account?
People whose blindness or disability began between ages 26 and 46. Before 2026, onset had to be before 26.
Do I have to be on SSI or SSDI?
No. If you are not receiving those benefits, you can qualify through a disability certification that your condition caused marked and severe limitations before age 46, with a physician’s diagnosis on file.
Will an ABLE account cut off my SSI?
The first $100,000 is not counted. Above that, SSI can be suspended if you exceed the resource limit, but Medicaid continues if you are otherwise eligible.
Can I open an account in another state?
Yes, in any state plan that accepts out-of-state residents. You may have only one ABLE account.
Sources: IRS ABLE accounts page (updated Nov. 6, 2026); IRS 2027 inflation adjustments; SSA Spotlight on ABLE Accounts, 2026 edition; ABLE National Resource Center; IRS Publication 907.
Photo: A person who uses a wheelchair cooks in their kitchen. U.S. Consumer Product Safety Commission, public domain, via Wikimedia Commons.
