An ABLE account lets a person with a disability save money without losing SSI or Medicaid. Since January 1, 2026, far more people can open one. The age limit moved from disability that began before age 26 to disability that began before age 46.
If you or someone in your family became eligible this year, there are still a few weeks to use the 2026 contribution limit. ABLE contributions count in the calendar year they are made, so money added after December 31 counts toward 2027 instead, and the unused 2026 room is gone.
This guide covers who qualifies now, how much can go in, how the account affects SSI and Medicaid, and what to do before the year ends. The figures come from the IRS, the Social Security Administration’s program rules and Public Law 119-21.
What an ABLE account is
An ABLE account is a tax advantaged savings account for a person with a disability, run by a state program. Money grows without federal tax, and withdrawals are tax free when they pay for qualified disability expenses. Those cover most everyday costs: housing, food, transportation, education, job training, health care, assistive technology, legal and financial help, and funeral costs.
The bigger reason families use ABLE accounts is benefits. SSI has a $2,000 limit on what a single person can own. Money in an ABLE account, up to $100,000, does not count toward that limit. For many people on SSI, it is the only practical way to save.
Each person can have one ABLE account. You can open it through any state’s program that accepts out of state residents, not only your own.
Who qualifies in 2026
Under section 124 of the SECURE 2.0 Act, starting with tax years after December 31, 2025, a person qualifies if their disability began before age 46 and they either:
- Get SSI or Social Security disability benefits based on that disability, or
- Have a disability certification, which is a signed statement that the person has a qualifying physical or mental impairment that began before age 46, with a diagnosis from a licensed physician
The person can be any age now. What matters is when the disability began. A 58 year old whose disability started at 40 qualifies. A 30 year old whose disability started at 29 also qualifies, and could not have opened an account in 2025.
The ABLE National Resource Center, a nonprofit that tracks the programs, estimates that about 6 million more people became eligible with the change, including about 1 million veterans. That is the group most likely to have missed the news.
How much can go in
The annual limit for contributions from everyone combined is $20,000 for 2026, under IRS Revenue Procedure 2025-32. The IRS has already set the 2027 limit at the same $20,000 in Revenue Procedure 2026-35.
Note that the ABLE limit is no longer the same as the gift tax exclusion, which is $19,000 for 2026. A 2025 change in the inflation formula separated the two.
Working beneficiaries can add more through a rule called ABLE to Work. If the account owner has a job and no contributions went into an employer retirement plan for them that year, such as a 401(k), 403(b) or 457(b), they can add their own earnings up to the federal poverty line for one person. For 2026 that is:
- $15,650 in the 48 contiguous states and Washington, D.C.
- $19,550 in Alaska
- $17,990 in Hawaii
In the lower 48, that brings the total possible for 2026 to $35,650. Public Law 119-21 made ABLE to Work permanent.
Two more 2025 law changes are worth knowing:
- Rollovers from a 529 college plan into an ABLE account are now permanent. A rollover counts toward the $20,000 annual limit along with every other contribution.
- The Saver’s Credit for ABLE contributions is permanent. A low income account owner who contributes can get a federal credit. Starting in 2027, the amount that can count toward the credit rises from $2,000 to $2,100, and ABLE contributions will be the only kind that still qualifies once retirement savers move to the new Saver’s Match. Our article on the Saver’s Credit in 2026 explains the 2026 version.
How it affects SSI and Medicaid
The Social Security Administration’s rules for ABLE accounts are in its program manual, POMS SI 01130.740. The key points:
- The first $100,000 does not count as a resource for SSI.
- Contributions are not income to the account owner. But the owner’s own wages or benefits are still counted as income when received, before they go into the account.
- Withdrawals for housing need care. If money taken out for rent or a mortgage is still sitting in a bank account at the start of the next month, it counts as a resource. Spend housing withdrawals in the month you take them out.
- Over $100,000, SSI is suspended, not ended. Cash payments stop while the balance stays above $100,000, with no time limit, and Medicaid coverage continues. Payments can restart when the balance drops back below the line, as long as other resources are under the limit.
ABLE balances do not count against Medicaid eligibility. When the account owner dies, the state Medicaid program can claim what is left, after outstanding qualified expenses such as funeral costs are paid, to recover what Medicaid spent on the person after the account was opened.
What to do before December 31
1. Check the age of onset. If a disability began between ages 26 and 45, the person is newly eligible. Gather the SSI or SSDI award letter, or ask a doctor for the diagnosis needed for a disability certification. 2. Open the account early enough. Each state program sets its own processing time. Leave a couple of weeks for an account to open and for a bank transfer or check to clear before the year ends. 3. Use the 2026 room. Family members can give directly to the account, and holiday gifts are a natural time to do it. Track the total so all contributors together stay under $20,000. 4. Add ABLE to Work if you work. If you have a job with no employer retirement contributions this year, you can add up to $15,650 of your own earnings in the lower 48. Tell the ABLE program so it can accept the extra amount. 5. Consider a 529 rollover. If a 529 plan for the same person or a family member is not needed for college, a rollover before December 31 counts toward the 2026 limit. 6. Watch the $100,000 line if you get SSI. If the balance is close, plan larger expenses so the account stays below it.
If more than the limit goes in by mistake, the excess has to come out by the tax filing deadline, or a 6% excise tax applies.
Related help
ABLE savings sit alongside other programs. If the account owner receives SSI, our guide to SSI payment amounts covers the 2027 figures. For food benefits, our guide to SNAP income limits by household size has the current numbers. For people who work while on disability benefits, our SSDI work calculator shows how earnings affect payments.
This article explains federal ABLE rules for 2026 as published by the IRS and the Social Security Administration. State programs set their own fees, investment options and processing times, and some states also offer a state tax deduction. Check with your state program, and with your SSI or Medicaid office, before making large changes.
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