Over the last few years, wealth-building ABLE accounts have grown increasingly popular among amputees. Created by the Achieving a Better Life Experience Act of 2014, these tax-advantaged savings accounts allow people with limb loss and other disabilities to save and invest, without losing access to Medicaid, Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and other means-tested benefits.
But the original law imposed a hard eligibility cutoff that excluded millions of potential participants: You could only open an ABLE account if you acquired your disability before age 26. That rule shut out the vast majority of amputees, including nearly everyone who lost a limb as a complication of diabetes.
That barrier disappeared on January 1, when the ABLE Age Adjustment Act took effect. The new law expands eligibility to include everyone whose disability began before age 46. Disability advocates have pursued that change for years, and experts say it could reshape financial planning for Americans with disabilities and their families. The shift is already being described as the most consequential update to the ABLE program since its launch. It will enable millions of additional amputees—including veterans, cancer survivors, people with traumatic injuries, and some people with vascular-related limb loss—to take advantage of this savings vehicle.
The original age limit had nothing to do with financial logic. It was part of a legislative compromise during the bill’s initial passage in 2014, forced by deficit hawks who sought to limit the costs of the bill. It reflected outdated assumptions about when disability “happens,” along with fears that people would game the system and receive benefits they did not truly need. But the fears about cost and fraud have never materialized. On the contrary, ABLE accounts have made it easier for Americans with disabilities to work toward financial self-sufficiency.
An ABLE Account Refresher
ABLE accounts function somewhat like a 529 college savings plan. They enable you to build tax-exempt wealth and withdraw funds tax-free, as long as you use the money for qualified expenses such as housing, transportation, mobility aids, and healthcare expenses. Most important, those funds don’t count against income and asset thresholds that help determine eligibility for public benefits. If you’re receiving SSI, you can exempt up to $100,000 in ABLE account assets from the strict $2,000 asset limit. That feature is designed to keep people safely away from the benefits cliff, which deters recipients from earning enough income to attain financial independence. The contribution limit for 2026 has increased to $20,000, although an additional provision (ABLE to Work) allows qualified account holders to exceed that amount.
Like 529 accounts, ABLE accounts are offered via state-run programs, and some of the technicalities vary from state to state. You can open an account in any state, regardless of where you live. Visit the ABLE National Resource Center for info about how to find the plan that works best for you, and how to open your account.
The updated age limit acknowledges the reality that disability doesn’t follow neat timelines. Neither should access to savings, investment growth, or financial dignity. As millions of newly eligible Americans begin opening ABLE accounts, the program’s next chapter is less about policy and more about possibility—removing all age restrictions, and making these common-sense plans available to everyone who can benefit.
