--- title: Millions More Americans Can Now Use ABLE Accounts for Tax-Free Savings description: Tax-advantaged ABLE accounts now cover disabilities diagnosed up to age 46, expanding eligibility to millions more Americans. authors: - name: Adam Hardy role: Lead Data Reporter url: https://money.com/author/adam-hardy/ bio: Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and more than a dozen local and regional newspapers. education: University of South Florida, BA, Magazine Journalism at_money_since: 2021 articles: 503 covers: - Personal Finance - Banking - Business - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Pets - Professional Services - Retirement - Shopping - Taxes - Technology also_seen_in: - The Penny Hoarder - Forbes Advisor - Creative Loafing - The New York Times - The Washington Post - Bloomberg - Harvard Law School - The Federal Register - National Consumer Law Center - CBS News - Becker's Hospital Review - Business Insider - Mother Jones - The Week - Fortune - The Philadelphia Inquirer - National Association of Student Financial Aid Administrators (NAFSAA) - Education Advisory Board (EAB) - The Institute for College Access & Success (TICAS) - This Morning with Gordon Deal - Empower - Reddit social: - https://www.x.com/hardyjournalism - https://www.linkedin.com/in/hardyjournalism/ editors: - name: Katherine Peach role: Associate Editor url: https://money.com/author/katherine-peach/ bio: Katherine Peach is an associate editor with a focus on news and email at Money. Her writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. education: University of Maryland, Baltimore County at_money_since: 2025 articles: 14 covers: - Personal Finance - Banking - Career Advice - Credit - Credit Cards - Debt - Economy and Politics - Education - Federal Reserve Rate Cuts - Health and Wellness - Housing - Identity Theft - Insurance - Investing - Lifestyle - Loans - Mortgages - Professional Services - Retirement - Shopping - Taxes published: '2026-01-14T17:06:01.000Z' modified: '2026-01-14T17:06:01.000Z' section: Personal Finance tags: - News word_count: 599 canonical: https://money.com/able-accounts-expanded-eligibility/ type: NewsArticle source: structured-blocks --- > **Disclosure:** We research all brands listed and may earn a fee from our partners. Research and financial considerations may influence how brands are displayed. Not all brands are included. [Learn more](https://money.com/page/disclaimer/). ![Couple looking over their finances together](https://img.money.com/2026/01/News-Millions-Americans-Special-Savin.jpg) A once-niche [savings account for people with disabilities](https://money.com/changemakers/edward-mitchell/) has just relaxed its eligibility rules, expanding tax-free savings and investing perks to millions more Americans. As of Jan. 1, tax-advantaged ABLE accounts — named after the 2014 Achieving a Better Life Experience Act — are available to Americans who were diagnosed with a qualifying disability by the age of 46. Previously, the age threshold was 26, limiting access to the account to 8 million people. Now, about 14 million Americans may qualify for one, according to the [National Disability Institute](https://www.nationaldisabilityinstitute.org/uncategorized/able-age-adjustment-act/). ## Saving money now affords you new opportunities in the future ### It's never too late to put some money aside in a High-Yield Savings Account from Barclays. Click on your state and find out more. [View Rates](https://money.com/pr/u4474283ac96?ap_referrer=%2Fable-accounts-expanded-eligibility%2F) The accounts come with a slew of tax benefits for those who qualify. In 2026, the contribution limit is $20,000, plus up to $15,650 extra if you don’t have a 401(k) or other employer-sponsored retirement plan. Contributions can be invested, and the earnings grow tax-free. Crucially, the value of the account is entirely exempt from the means-testing rules for Medicaid and federal student aid through the FAFSA. For the Supplement Security Income program, up to $100,000 is excluded. ABLE withdrawals aren’t taxed as long as the money is used on qualifying disability-related expenses, housing, health care, wellness or education. (Withdrawals outside of these categories incur a 10% tax penalty and are taxed as income.) Despite the benefits, relatively few people who qualify have signed up for one. At the [end of September 2025](https://www.529conference.com/3q-2025-529-and-able-market-sizing-highlights/), of the estimated 8 million eligible Americans, only about 223,000 of them opened an ABLE account. ## Who qualifies for ABLE accounts? ABLE accounts are now available to U.S. residents with qualifying disabilities that began before the age of 46, or about 14 million Americans. The disability must be severe to qualify. If you receive Supplemental Security Income or Social Security Disability Insurance, you’re automatically eligible. Otherwise, the key qualification is a [signed eligibility letter](https://www.ablenrc.org/wp-content/uploads/2025/02/ABLEAccountDisabilityCertificationForm_2025.pdf) from your physician stating that your condition is long-term, “marked and severe.” Much like [529 college savings plans](https://www.ablenrc.org/select-a-state-program/), ABLE accounts — formally known as 529A plans — are operated at the state level. Currently, [46 states offer ABLE plans](https://www.ablenrc.org/select-a-state-program/), which are administered by partnering banks and investment firms. Idaho, North Dakota, South Dakota and Wisconsin do not offer ABLE accounts. However, many plans accept out-of-state applicants. Eligible applicants can own only one account. While the core qualifications are the same nationwide, there are some differences among state plans. Namely, the maximum account balance varies by state, usually running between $300,000 and $600,000. The partnering banks and investment firms often vary by state as well, with most states offering between four and eight investment options. The new age adjustment from 26 to 46 has been a long time coming. After years of pushing from advocates since ABLE’s 2014 inception, the threshold of age 46 was enacted by former President Joe Biden in 2022 as part of a sprawling $1.7 trillion spending package. That legislation also included the [SECURE 2.0](https://money.com/retirement-changes-2025-secure-act/) retirement-reform bill, as well as changes to ABLE’s sister account — the 529 college savings plan. The ABLE changes did not take effect until this month. “It’s no exaggeration to say that ABLE is a life-changing savings program,” Pennsylvania Treasurer Stacy Garrit, who oversees the state’s ABLE plans, [said at the time](https://nast.org/wp-content/uploads/edited-able-press-release.pdf). “\[A\]nd the ABLE Age Adjustment Act will have a huge positive impact.” “It will help millions of Americans with disabilities, including 1 million veterans,” she added, “by providing financial empowerment and increased independence.” ### Up to 2-day-early paycheck ![View Rates](https://s3.consumersadvocate.org/prd/image/image/19227/medium_5c3a0d96-3da5-45d8-8e99-d58f043e9433.png) Our Partner [View Rates](https://money.com/go/864ee39648bc?bidid=4136861713&pmeta=p129-c561-u39720&ptid=672941845&ptoken=63d6ab2280ab3c50742244d9f35ab452) ### No monthly maintenance fees ![View Rates](https://s3.consumersadvocate.org/prd/image/image/7510/medium_8a6feaaf-bb2a-4668-a20d-603241767f86.png) Our Partner [View Rates](https://money.com/go/9f4e0174c256?bidid=4136861708&pmeta=p129-c561-u39720&ptid=672941845&ptoken=6309b0b1591b1584567f4d2e05444166) ### Open an account in 5 minutes ![View Rates](https://s3.consumersadvocate.org/prd/image/image/40232/medium_cfa5e5b0-4ccd-4dc6-814f-910bb4151eb3.webp) Our Partner [View Rates](https://money.com/go/d288dac913da?bidid=4136861716&pmeta=p129-c561-u39720&ptid=672941845&ptoken=ed042060b9f8893e84f8293d4e677d12) ### $500 minimum opening deposit ![View Rates](https://s3.consumersadvocate.org/prd/image/image/35396/medium_03f248f6-d7f4-4da6-8f13-322fce5d1be2.webp) Our Partner [View Rates](https://money.com/go/bcdaf6db2e95?bidid=4136861721&pmeta=p129-c561-u39720&ptid=672941845&ptoken=9f12450a39f9ae3de3eccd9db5aa6a79) ![](https://s3.consumersadvocate.org/prd/image/image/19227/medium_5c3a0d96-3da5-45d8-8e99-d58f043e9433.png) With a Savings Account from SoFi®, you can save money while earning it [View Rates](https://money.com/pr/s46e80315d91?ap_referrer=%2Fable-accounts-expanded-eligibility%2F) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "BreadcrumbList", "@id": "https://money.com/able-accounts-expanded-eligibility/#breadcrumb", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://money.com" }, { "@type": "ListItem", "position": 2, "name": "Personal Finance", "item": "https://money.com/personal-finance/" }, { "@type": "ListItem", "position": 3, "name": "Saving Money", "item": "https://money.com/saving-money/" }, { "@type": "ListItem", "position": 4, "name": "Millions More Americans Can Now Use ABLE Accounts for Tax-Free Savings" } ] }, { "@type": "WebSite", "@id": "https://money.com/#website", "url": "https://money.com", "name": "Money", "publisher": { "@id": "https://money.com/#organization" } }, { "@type": "WebPage", "@id": "https://money.com/able-accounts-expanded-eligibility/#webpage", "url": "https://money.com/able-accounts-expanded-eligibility/", "name": "Millions More Americans Can Now Use ABLE Accounts for Tax-Free Savings", "isPartOf": { "@id": "https://money.com/#website" }, "datePublished": "2026-01-14T17:06:01.000Z", "mainEntity": { "@id": "https://money.com/able-accounts-expanded-eligibility/" }, "inLanguage": "en-US", "breadcrumb": { "@id": "https://money.com/able-accounts-expanded-eligibility/#breadcrumb" }, "dateModified": "2026-01-14T17:06:01.000Z" }, { "@type": "NewsArticle", "headline": "Millions More Americans Can Now Use ABLE Accounts for Tax-Free Savings", "articleSection": "Personal Finance", "image": [ { "@type": "ImageObject", "url": "https://img.money.com/2026/01/News-Millions-Americans-Special-Savin.jpg", "width": 2880, "height": 1920, "caption": "News-Millions-Americans-Special-Savings" } ], "author": [ { "@type": "Person", "name": "Adam Hardy", "url": "https://money.com/author/adam-hardy/", "@id": "https://money.com/author/adam-hardy/#author", "description": "Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. 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