What an ABLE account is
An ABLE account is a tax-advantaged savings/investment account for people with disabilities. Money in it doesn't count against SSI's $2,000 limit (up to a $100,000 balance) or against Medicaid — so people on SSI can save. Growth and withdrawals for qualified disability expenses are tax-free.
2026 contribution limits
In 2026 you can contribute up to $20,000 per year from all sources combined (up from $19,000 in 2025; the 2025 federal budget law raised the ABLE limit and de-linked it from the IRS gift-tax annual exclusion, which stayed $19,000).
If you work and don't participate in an employer retirement plan, you can add even more under ABLE to Work — up to $15,650 more in 2026 (higher in Alaska and Hawaii), or your earnings, whichever is less.
Who's eligible — the big 2026 expansion
Until now, ABLE accounts were limited to people whose disability began before age 26. Starting January 1, 2026, that rises to before age 46 — opening ABLE accounts to an estimated 6 million more Americans, including many people who sustained a spinal cord injury or other disability as adults.
What you can spend it on
"Qualified disability expenses" are broad: housing, transportation, health and assistive technology, education, employment training, legal and financial services, and basic living expenses. Keep receipts. (Note: at the account-holder's death, remaining funds may be subject to Medicaid recovery in some states.) Open one through any state's program at the ABLE National Resource Center.
Special needs trusts
For larger sums than an ABLE account can hold — a personal-injury settlement, an inheritance, or family gifts — a special needs trust (SNT) holds money for your benefit without counting against SSI/Medicaid, with no comparable balance limit (an ABLE balance over $100,000 pauses SSI cash benefits; an SNT doesn't). Families often pair the two: the trust holds the large pool, and the trustee moves up to the annual limit into your ABLE account for flexible, everyday spending.
The trust types — first-party (d4A), third-party, and pooled (d4C) — and how to set one up are covered in the Legal & Financial guide.
Sources: ABLE National Resource Center, IRS 2026 inflation adjustments, SSA: ABLE accounts.