Big Changes in 2026: Expanded Financial Benefits for Americans with Disabilities
Social Security disability (SSD) provides critical income for people who are no longer able to work due to a medical condition. Those are earned benefits accrued across your working life, and offer an important safety net. But SSD benefits are just one piece of the financial puzzle.
People with disabilities often face financial challenges, especially if they are dependent on Supplemental Security Income (SSI) or Medicaid. That’s because what is typically considered responsible financial management, such as building an emergency savings account, can disqualify a person from receiving those benefits.
At the same time, a person living with disabilities may need that safety net even more. According to a report from the National Disability Institute, on average a disabled person needs about 28% more income than a non-disabled person to sustain the same standard of living.
For more than a decade, certain Americans with disabilities have had an important tool to help address that problem: ABLE accounts. In 2026, millions of people who previously didn’t qualify for ABLE accounts will be eligible.
What is an ABLE Account?
ABLE stands for Achieving a Better Life Experience. The accounts were created through federal legislation in 2014, with a goal of allowing individuals with disabilities and their families to contribute to the disabled person’s support without disqualifying them from critical federal benefits.
Social Security disability benefit eligibility is not affected by resources, since SSD is an insurance program for workers who have paid in to the system during their working years. However, some SSD recipients may rely on other public benefits, such as Medicaid. And, SSI is a need-based program with low resource limits.
The statute creating ABLE accounts makes them “non-countable” assets for purposes of Medicaid eligibility, SSI, and other federally-funded need-based benefits. There are caps on contributions and caps on the amount of money that is ignored when considering program eligibility, but they are high.
Monetary Limits on ABLE Accounts
There are several different limits to consider when setting up, contributing to, and managing an ABLE account. Some key considerations in 2026 are:
- Contribution limits: The aggregate annual contributions to an ABLE account cannot exceed the federal gift tax exclusion. In 2026, that’s $19,000/year. The limit applies to the beneficiary and not the specific donors. So, the beneficiary can receive a maximum of $19,000/year, but there is no limit on the aggregate amount a contributor can give to multiple beneficiaries.
- SSI Resource Limit: For SSI purposes, only $100,000 in an ABLE account is disregarded. Any amount in excess of $100,000 will be counted as a resource, and could disqualify the recipient from SSI benefits.
- Overall Contribution Limit: The total contributions to an ABLE account may not be greater than the state’s limit on contributions to a 529 account. This cap varies from state to state. In 2026, state caps range from $235,000 to $621,411.
As you can see, the impact of an ABLE account and the limitations on contributions will vary from state to state and based on which programs you receive benefits from. So, it is important to make sure you thoroughly understand the rules in your state and the possible impact on your benefits. For example, the general resource cap for SSI is just $2,000 for an individual. So, a very slight difference in your ABLE account balance could mean the difference between receiving monthly SSI benefits and losing eligibility.
Qualified Disability Expenses (QDEs)
Withdrawals for qualified disability expenses are typically tax free. That classification isn’t limited to medical care, but covers a range of necessities such as:
- Housing costs
- Educational expenses
- Employment training
- Personal support services
- Financial management services
- Legal services
- Health and welfare expenses
Who Can Have an ABLE Account in 2026?
This is the big change in 2026. When ABLE accounts were created, Social Security disability and SSI recipients and those whose impairments met the disability or blindness standard for SSI for children were eligible–but only if their disability started before the age of 26. While this benefitted a great many people with certain types of disabilities, it excluded the vast majority of both SSD and SSI recipients.
A 2024 law increased the age cut-off by 20 years. Starting January 1, 2026, anyone who meets the general criteria is eligible for an ABLE account if they became disabled before age 46. That still leaves out many disability recipients, since a high percentage of new disability determinations are for people aged 50+. But, it has been estimated that about six million more SSD and SSI recipients will qualify for ABLE accounts under the updated law.
How to Establish an ABLE Account
There’s a lot to consider when choosing an ABLE account, so the process is generally best tackled with the help of a financial advisor or a disability advocate familiar with the intricacies of ABLE accounts and account management. Some key issues to consider:
- State: Most states offer ABLE plans, and there may be some tax benefits to establishing a plan in your own state. But most states also allow out-of-state account holders, so be sure to explore all of your options.
- Costs: There are generally management fees associated with ABLE accounts, but they may vary significantly. Some may charge just a flat fee per month or year, while others may charge percentage-based fees.
- Investment Options: Like 401(k) accounts, ABLE accounts typically allow account holders to choose their investment plan. But some plans offer only a handful of options, while others may have a dozen or more.
ABLE accounts offer an opportunity for Social Security disability and SSI recipients to raise their standard of living without putting their SSI benefits, Medicaid, or other federally-funded benefits at risk. However, it’s crucial to make informed decisions about the account and its management. One good source of information is the ABLE National Resource Center.
SSD and SSI Benefits
For most people, qualifying for an ABLE account starts with being approved for SSD or SSI benefits. Unfortunately, that process can be long and complicated. At Disability Help Group, we’ve helped thousands of people secure the disability benefits they deserve. To learn more about how we can help with your disability application or appeal, call us today at 800-800-3332 or fill out our contact form here.
