Nearly 26% of American families have at least one member with a disability. 1 That’s just over a quarter of our country’s population. In 2014 the government created the 529ABLE (Achieving a Better Life Experience), an account that works much like a Roth IRA, only better. Also referred to as the ABLE plan, it allows you to save already-taxed dollars in an account that grows without taxation, but it does so on a much larger scale than the Roth IRA. Roth IRAs have an annual maximum contribution limit of $7,500 (or $8,600 for those age 50 or above) in 2026 whereas the ABLE can accept up to $19,000 per year in 2026, or another $15,650 if the account holder contributes their earnings, on a tax-free basis. Roth IRAs also have an income limit that can disqualify you from being eligible to make contributions, whereas a 529ABLE does not.
So what is a 529ABLE account? Similar to a Roth IRA, the account grows tax-free and when withdrawn, the withdrawal is ultimately tax-free (even the growth!) as long as it's used for a qualified expense. Basic living expenses are considered qualified expenses, so the following are considered qualified expenses:
- Housing and food (including utilities, rent, modification, mortgage, and property taxes)
- Health and wellness (medical expenses, preventive care, wellness programs, and insurance premiums)
- Personal support services
- Transportation
- Employment training and support
- Legal fees and financial management
- Assistive technologies
- Funeral and burial expenses
The expenses in these categories must directly benefit the account owner but not necessarily exclusively benefit them.
Prior to January 1, 2026 only a portion of this population could qualify for this account as it was only available to individuals whose disability occurred prior to reaching age 26. The big news now is that starting in 2026 anyone with a disability that occurred prior to age 46 will be able to open a 529ABLE! What’s more is the One Big Beautiful Bill Act (OBBBA) expanded and made permanent several provisions of the ABLE further enhancing the plan for individuals. Such provisions are: 1) Account holders who have a job but do not participate in a workplace retirement plan can contribute an extra $15,650 to their ABLE accounts (more if you live in Alaska or Hawaii). 2) Any unused or leftover 529 college plan fund whose beneficiary is the same as the ABLE owner, can be rolled over to an ABLE tax-free up to the annual contribution limit, and 3) Account holders who have jobs and contribute to their own accounts may be able to receive a nonrefundable tax credit of up to $1,050 in 2026 (the amount of the tax credit amount on the account owner’s AGI). 1
The increase in age allows for so many more people to qualify for an ABLE account. In fact, here are three excellent examples that I’ve seen just recently:
- A long-time client of mine has recently began medical leave from her employer due to a muscular disorder that she has had for several years now. She was diagnosed at age 40 but is just now coming to the point where she is unable to do the duties of her job. Starting January 1, 2026 she will qualify for an ABLE!
- Another client became badly injured while walking her dog for their morning walk. She is undergoing extensive therapies and will forever be impacted by this incident as she has extensive memory problems. She will now qualify for the ABLE!
- Several clients are retired military collecting disability benefits due to ongoing exposure to burn pits while serving overseas. Until now, they weren’t eligible for the 529ABLE because their disabilities occurred after age 26, but because they occurred prior to age 46, they will now qualify!
The beauty of the 529ABLE is that it is not dependent on your income level, assets, status of employment, disability rating, and whether or not you’re receiving SSI or SSDI , VA disability, or any other supports.2 Instead, eligibility is determined by 1) if you meet Social Security’s medical criteria and are receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits, or 2) a licensed physician signs a disability certificate stating the diagnosis and that there is a “marked and severe” functional limitation(s) that started before age 46.2
This is a win for the disabled community as not all disabilities are congenital. If any of the scenarios listed above resemble your experience, or any one you know, consider looking into the 529ABLE. It’s a great way to save on a tax-free basis while helping you “achieve a better life experience”!
1 Mattlin, Ben. “ABLE Accounts For Disability Are Expanding in 2026”. 15 Dec 2025. https://www.fa-mag.com.
2 “ABLE NRC Veterans Toolkit”. Nov 2025. ABLENRC.org.