The market for ABLE participants has reached new highs, with approximately $2.7 billion spread across 214,000 accounts nationwide.1 Although a coterie of financial professionals have supported ABLE since the earliest Plans launched in 2016, we believe ABLE Plans are largely underused as savings vehicles for people with disabilities. The good news is that important legislative developments should change that usage very soon.
Specifically, the January 1, 2026 effective date of the ABLE Age Adjustment Act is expected to expand ABLE eligibility by an estimated 75%. The increased age of onset of a disability - from 26 to 46 - is significant as countless developmental disabilities can emerge over this twenty-year period. In addition, the recently enacted HR 1 has made permanent three critical ABLE provisions that were scheduled to sunset as of December 31, 2025. These provisions should enhance the appeal of an ABLE account as part of an overall financial plan.
First, HR 1 has made permanent the 529-to-ABLE rollover, which provides the ability to transfer unused 529 assets contributed on behalf of the individual with disabilities or other qualifying family member to an ABLE account. This funding source can be an added benefit for contributions to an ABLE account.
Second, the ABLE-to-Work provision importantly expands allowable annual contributions to an ABLE account for employed beneficiaries who do not participate in a workplace retirement plan. Depending upon the State where a beneficiary works, this could bring in an additional $15,060 in annual contributions. Given the potential asset accumulation of ABLE accounts, financial advisors should incorporate them in an individual’s financial plan to the greatest extent possible.
And third, the Saver’s Credit will now permanently offer an incentive to low- and moderate-income wage earners to contribute to an ABLE. Today, eligible earners can claim a Saver’s Credit for up to $2,000 in ABLE contributions. Beginning in 2027, the maximum contribution eligible for the credit will increase to $2,100. This tax credit will increase each year and is designed to reward long-term saving and financial independence.
The confluence of the ABLE Age Adjustment Act and ABLE to Work, 529-to-ABLE Rollovers, and the Saver’s Credit should compel State and Program Administrators to double down on their distribution strategies. For us, this means that targeted and aggressive outreach must incorporate financial advisors and employers. Each provide meaningful and compelling distribution opportunities for energetic ABLE Administrators. As Plans tap into these important channels, assets under management surely will increase due to the added insight of financial professionals, and the benefits of saving at the workplace. Additional support by known influencers – e.g., disability advocates, CPAs, Chambers of Commerce, to name just a few, will bolster the power that financial professionals and employers bring to bear.
As a Municipal Advisor to States on ABLE Plans since 2015, we have followed the continued expansion of these compelling programs, particularly as they have increasingly benefited so many people with disabilities. Please contact us to see the opportunities to impact the ABLE Plans you touch and their participants. We would love to talk more about the abundant opportunities we see ahead.
1Source: ISS Market Intelligence as of June 30, 2025