Effective January 1, 2026, the ABLE Age Adjustment Act significantly expanded the pool of individuals eligible to open an ABLE Account. By moving the age of onset from 26 to 46, Congress empowered millions of deserving people to benefit from ABLE, including among others, Veterans and adults who suffered catastrophic injuries after the age of 26. Notwithstanding the expansion, the number of new ABLE accounts opened in the first quarter of 2026 was not significantly greater than first quarters of prior years. For us, this means that States and ABLE Program Administrators have a significant opportunity right now.
Let’s take a step back and reflect on the benefits of an ABLE account. Authorized by Congress in December 2014, ABLE accounts are a way to create financial independence for people with disabilities. ABLE accounts allow account owners to save up to $20,000 annually for a wide range of disability-related expenses, which are broadly interpreted as any expenses that improve the quality of life. Moreover, thanks to ABLE to Work, an account owner who is employed may make additional contributions to his or her ABLE account to save for retirement, provided no contributions are made to certain defined contribution plans, deferred compensation plans, or an annuity contract in the same taxable year.1 On the downside, an eligible account owner can only have one ABLE account (in contrast to 529 accounts, which have no such restrictions). Additionally, for account owners who receive Supplemental Security Income ("SSI"), ABLE account balances exceeding $100,000 will suspend receipt of SSI until the account balance falls below that threshold.
From our days working in financial product distribution, we would characterize ABLE as a product that is “sold and not bought,” meaning not enough folks in the pool of eligible individuals are asking about ABLE. This begs the question: how can we raise awareness across the recently expanded demographic?
We know that States and their Program Administrators work closely with advocacy groups across the country and that these collaborations have enhanced participation in ABLE. To supplement that, we encourage additional outreach to entities that advise or educate people with disabilities about financial planning and budgeting. Importantly, this includes wealth managers, registered investment advisors, and trust and estate attorneys, many of whom may already have created special needs trusts (“SNTs”) for newly eligible account owners. While ABLE regulations differ from those governing SNTs, an ABLE account established in conjunction with an SNT could provide meaningful additional benefits.
With an understanding of the benefits of ABLE as a standalone account or to complement an existing SNT, investment, legal, and planning advisors will provide their clients the most comprehensive financial plan possible. Even where an SNT is already in place, a financial planner or other trusted advisor can analyze how both vehicles may work in tandem to meet financial goals without jeopardizing federal benefits.
The bottom line is that States should target or increase outreach to financial planners and trusted advisors who have already-established communication channels with newly eligible ABLE beneficiaries. By building on current outreach efforts, States can broaden their reach within the community and identify new groups and organizations to increase awareness and contributions.
The expansion of ABLE eligibility was hard-fought, and we witnessed that effort firsthand. We are excited to see State Administrators help ensure that every newly eligible individual has the opportunity to establish an ABLE account.
1 Additional contributions range from $15,650 to $19,550 depending upon the account owner’s State of residency