Big Changes to ABLE Accounts: Expanded Eligibility and Higher Contribution Limits in 2026

Written by Christian Fahrig, Florida Bar Board-Certified Elder Law Attorney

ABLE Accounts (titled after the Achieving a Better Life Experience Act, which created them) are an important planning tool for individuals with disabilities and their families. Recent federal changes significantly expand who can use these accounts and how much can be contributed, making ABLE accounts even more flexible and valuable.

ABLE accounts are tax-advantaged savings accounts designed for individuals with disabilities who rely on needs-based public benefits such as Supplemental Security Income (SSI) and Medicaid. The purpose of these accounts is to allow eligible individuals to save and spend money on disability-related needs without losing critical benefits. Funds in an ABLE account can be used for a wide range of qualified disability expenses, including housing, transportation, education, healthcare, assistive technology, employment training, and basic living expenses. Earnings grow tax-free, and withdrawals used for qualified expenses are not subject to income tax.

Historically, one of the most significant limitations of ABLE accounts was eligibility. Since the Achieving a Better Life Experience Act was passed in 2014, an individual’s disability must have started before age 26 in order to qualify. That rule excluded many people whose disabilities arose later in life. That limitation has now changed in a meaningful way. The age of disability onset limit has increased from 26 to 46, dramatically expanding access to ABLE accounts. Individuals who became disabled anytime before their 46th birthday may now be eligible.

This change is particularly impactful for individuals who developed or were diagnosed later in life with conditions such as multiple sclerosis or Parkinson’s disease, those who suffered traumatic injuries as adults, and veterans whose service-related disabilities manifested after age 26.

Another important change arrived as of January 1, 2026, when the annual contribution limit for ABLE accounts increased to $20,000. In the past, the ABLE contribution cap was tied to the IRS annual gift tax exclusion, meaning the allowable amount shifted whenever federal tax rules changed. Beginning in 2026, the ABLE contribution limit will no longer be linked to the gift tax exclusion. The higher contribution limit allows family members and others to more meaningfully assist individuals with disabilities, particularly as the costs of housing, healthcare, and support services continue to rise.

In addition to annual contribution limits, ABLE accounts are subject to account balance limits that may affect planning. In Florida, the account is subject to a maximum balance limit based on the state’s Investment 529 college savings plan limit, which is currently $418,000. Once the account balance reaches this limit, no additional contributions may be made until the balance falls below the cap.

For individuals receiving SSI, there is an additional consideration. If an ABLE account balance exceeds $100,000, the individual’s SSI cash benefit is suspended (but not terminated). Note however, that the same restriction does not apply to Medicaid benefits. Medicaid eligibility is not lost due to exceeding the $100,000 SSI threshold, and SSI benefits may be reinstated once the account balance is reduced below that amount. These rules make it essential to monitor balances carefully, particularly when larger contributions are being made.

Florida residents have access to the state’s ABLE program, through ABLE United, which administers Florida’s ABLE accounts. More information is available here: https://www.ableunited.com/.

ABLE accounts can preserve eligibility for public benefits such as Medicaid and SSI for disabled individuals, while still allowing funds to be used for everyday needs, including housing expenses, that can be problematic under other planning strategies. That said, ABLE accounts are not a universal solution. Contribution limits, Medicaid payback rules, and coordination with special needs trusts all require careful consideration. The attorneys and planning professionals at the Elder Law Center of Kirson and fuller can assist and advise you in regard to your disability, Medicaid, SSI, and other elder planning needs.   Call or text us now to schedule a consultation at 407-422-3017.