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What’s New — Recent Legislative Changes Expanding ABLE Account Opportunities
By: Rebecca Miller
Previously in “Understanding ABLE Accounts — What They Are and How They Work,” we covered the basics of ABLE accounts — what they are, who qualifies, and how they help individuals with disabilities save for the future.
Now, we turn to the exciting part: recent legislative changes that are expanding who can open an ABLE account, how much can be contributed, and what tax advantages may apply. These changes have made ABLE accounts even more accessible and powerful resources for financial independence. Several new laws have expanded eligibility, made temporary provisions permanent, and introduced new tax benefits that enhance savings opportunities for individuals with disabilities and their families.
The ABLE Age Adjustment Act
This legislation dramatically expanded eligibility by raising the age of disability onset requirement from 26 to 46, beginning January 1, 2026.
This change means that millions of additional Americans with disabilities will now qualify for ABLE accounts — including many whose disabilities began later in life due to illness, injury, or other conditions.
The One Big Beautiful Bill Act (OBBBA)
- 529-to-ABLE Rollovers
- Allows tax-free rollovers from 529 education savings plans to ABLE accounts
- Subject to annual contribution limits
- Particularly valuable when the original 529 beneficiary does not need all funds for education
- ABLE to Work Provision
Saver’s Credit
An ABLE account holder may be eligible for a nonrefundable tax credit known as the Saver’s Credit for contributions made to an ABLE account, and credit eligibility has been made permanent for 2026 and future tax years with no sunset.
The credit was up to 50% of the first $2,000 contributed — that is, up to a $1,000 tax credit — depending on an individual’s filing status and adjusted gross income during the applicable tax year. For 2026 and future tax years, the credit will increase to up to 50% of the first $2,100 contributed, for a maximum tax credit of $1,050.
This change makes ABLE accounts even more attractive as a savings vehicle for eligible individuals with modest incomes.
What These Changes Mean for Families
Together, these updates expand eligibility, increase savings potential, and strengthen tax incentives — helping individuals with disabilities and their families plan more confidently for the future.
With expanded eligibility, increased contribution limits, and enhanced tax advantages, ABLE accounts can play a key role in promoting financial security and independence.
Next Steps
Now is an excellent time for individuals with disabilities and their families to review their options and determine whether an ABLE account could be created or better utilized to meet financial goals and improve quality of life.
If you have any questions or would like additional assistance navigating ABLE accounts, please contact Rebecca Miller or another member of our estate planning team.
This article provides general information and should not be construed as legal or financial advice. Individuals should consult with qualified legal and financial professionals regarding their specific circumstances.
