The ABLE Age Adjustment Act: Expanding Opportunity for Millions
Picture the following scenario: David, a 34‑year‑old teacher, was recently diagnosed with multiple sclerosis. As his condition progressed, he faced mounting medical costs and the need to plan for accessible housing and transportation. Yet every time he tried to save more than $2,000, he risked losing his Supplemental Security Income (SSI) and Medicaid coverage. Traditional savings accounts and retirement plans weren’t safe options, leaving him stuck between financial insecurity and the fear of losing essential benefits. What could he do?
With the passage of the ABLE Age Adjustment Act, David’s situation changes dramatically. Beginning in 2026, because his disability onset occurred before age 46 (instead of 26), he will be eligible to open an ABLE account. That means he can save and invest tax‑free, use those funds for qualified disability expenses, and keep his SSI and Medicaid intact. For David—and millions like him—this is more than a financial tool. It’s a pathway to independence and dignity.
What the Act is and What it Does
The ABLE Act (Achieving a Better Life Experience Act) allows people with disabilities to open tax-free savings accounts to pay for disability-related expenses without losing eligibility for benefits like Medicaid or SSI. Under the original 2014 rule, only individuals whose disability began before age 26 were eligible to open an account. Beginning in 2026, the onset age will be raised to before 46, extending eligibility to an estimated 6 million more people. ABLE accounts provide important financial advantages: savings grow tax‑free, and withdrawals for qualified expenses such as housing, healthcare, education, or transportation are not counted as income. In addition, up to $100,000 in savings is excluded from SSI resource limits, helping individuals maintain benefits while building financial security
Why This Change Matters
The expanded ABLE framework offers powerful benefits for individuals and families. It provides financial empowerment by allowing people to plan for long‑term needs without the constant fear of losing essential benefits. Families gain asset protection, with the ability to build savings beyond the restrictive $2,000 SSI limit. The change also promotes inclusivity, acknowledging that disabilities can arise later in life rather than solely in childhood. Most importantly, it extends support to broader communities, ensuring that adults diagnosed with conditions such as MS, ALS, or serious mental health disorders are now eligible to participate.
The Broader Impact
The Age Adjustment Act is more than a policy tweak—it’s a statement of dignity. It tells millions of Americans that their ability to save, plan, and thrive matters. It reduces reliance on emergency aid by encouraging proactive financial planning. And it strengthens communities by empowering individuals to participate more fully in economic and social life.
Still, awareness is key. Today, only about 3% of eligible individuals use ABLE accounts. As eligibility expands, outreach will be critical. Families, advocates, and professionals must spread the word so that those who stand to benefit know these accounts exist and understand how to use them.
Looking Ahead
The ABLE Age Adjustment Act is a milestone in disability rights and financial inclusion. By expanding eligibility, it opens doors for millions who were previously shut out. For families, caregivers, and individuals navigating disability, it offers hope, security, and the chance to build a future with greater independence.
Come 2026, the promise of ABLE will finally reach the people who need it most.