This investment account is 'like a super-powered Roth,' expert says. And 6 million more Americans are now eligible to contribute
ABLE accounts are tax-advantaged investment accounts for Americans with disabilities and other medical conditions. Now even more savers can open one.
TL;DR
- Eligibility for ABLE accounts expands to an estimated 6.1 million more Americans starting January 1, 2026.
- The ABLE Age Adjustment Act raises the qualifying age for disability onset from before age 26 to before age 46.
- ABLE accounts are tax-advantaged investment accounts for individuals with disabilities, allowing savings for qualified expenses without affecting essential benefits.
- Contributions are made with after-tax dollars, grow tax-free, and qualified withdrawals are not taxed.
- Account holders can save up to $100,000 without losing Supplemental Security Income and Medicaid benefits.
- Individuals can self-certify a qualifying medical condition with a physician's diagnosis signed before their 46th birthday.
- Annual contribution limits are up to $20,000, with potential additional contributions for working individuals.
- Nearly all states sponsor ABLE accounts, with options for out-of-state participation; choosing a plan may involve comparing investment menus, fees, and potential state tax deductions.
- Some ABLE plans offer debit cards, while others do not.