Navigating the financial landscape for individuals with disabilities just got a major upgrade—and investors and advisors need to pay close attention. The recent legislative changes around Achieving a Better Life Experience (ABLE) accounts are not just incremental tweaks; they are poised to transform how millions of Americans with disabilities—and their families—can save, invest, and plan for the future without jeopardizing crucial government benefits.
The New Era of ABLE Accounts: What Investors Must Know
ABLE accounts, established federally in 2014 and modeled after 529 education savings plans, have been a lifeline for those with disabilities. They allow tax-advantaged savings for disability-related expenses such as housing, transportation, and healthcare. The kicker? These accounts don’t count against the asset limits for government benefits like Medicaid and Supplemental Security Income (SSI). This means families can build a financial cushion without risking eligibility for essential support.
As of early 2025, approximately 8 million people hold ABLE accounts with assets totaling about $2.5 billion. But here’s where it gets exciting: starting January 1, 2026, the ABLE Age Adjustment Act will raise the age limit for eligibility from 26 to 46. This change alone is expected to increase eligible participants by nearly 15 million, a staggering 50% jump in the market. This isn’t just a policy update—it’s a seismic shift in opportunity.
Why This Matters: The Broader Impact on Financial Planning
This expansion opens doors for a broader spectrum of disabilities that manifest later in life, such as multiple sclerosis, post-traumatic stress disorder, stroke, and neurological conditions. Notably, it also potentially includes over a million veterans—a demographic often underserved in financial planning circles.
Financial advisors should seize this moment to proactively educate clients about ABLE accounts. Many families may not realize that these accounts can now serve as powerful tools for wealth-building and financial security, similar to traditional retirement or education savings plans.
Legislative Boosts: The “Big Beautiful Bill” and Beyond
The recent tax and spending package signed into law by President Trump (informally dubbed the “big beautiful bill”) solidifies several tax advantages that enhance ABLE accounts’ appeal. For example:
- The annual contribution limit is tied to the gift tax exclusion, which stands at $19,000 for 2025 and will likely rise with inflation.
- Severely disabled workers may contribute beyond the annual limit if they are not participating in certain retirement plans.
- Assets from 529 college savings plans can now be rolled over into ABLE accounts. Imagine a family who has saved $100,000 or more for college; if their child later develops a disability, those funds can be seamlessly redirected to an ABLE account without penalty.
- Starting in 2027, low-income savers contributing to ABLE accounts may qualify for an enhanced Saver’s Credit, increasing both the eligible contribution amount and the maximum tax credit.
Real-Life Implications: The Dickerson Family Story
Consider Brandon Dickerson, a former line haul driver from Louisiana who suffered a ruptured brain aneurysm resulting in severe cognitive and communication impairments. His sister Geneva is exploring ABLE accounts to cover therapies not funded by insurance, such as speech and physical therapy. This example underscores a critical insight: ABLE accounts are not just about saving money—they are about enabling access to care and improving quality of life.
What Should Investors and Advisors Do Differently Now?
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Expand Eligibility Awareness: Many eligible individuals and families remain unaware of ABLE accounts or the impending age eligibility expansion. Advisors should integrate this into their client education strategies immediately.
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Incorporate ABLE Accounts into Holistic Planning: Given the tax-free growth and flexibility, ABLE accounts should be considered alongside retirement and education savings, especially for families with disabled members or those at risk of disability.
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Leverage Rollover Opportunities: Families with unused 529 plan funds should evaluate the benefits of rolling these into ABLE accounts, a strategy that could unlock significant financial resources for disability-related expenses.
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Monitor Legislative Updates: Tax policies and contribution limits tied to inflation mean advisors must stay vigilant and update client strategies accordingly.
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Engage with Disability Advocates and Organizations: Partnering with groups specializing in disability financial planning can provide deeper insights and better client outcomes.
Looking Ahead: The ABLE Account Market is Poised for Growth
According to ISS Market Intelligence, assets in ABLE accounts are expected to grow by at least 50% in 2026. This rapid expansion signals a burgeoning market with untapped potential for financial service providers, investment firms, and advisors who position themselves as experts in this niche.
Final Takeaway
The ABLE account landscape is evolving from a niche benefit into a mainstream financial planning tool. Investors and advisors who recognize this shift early and adapt their strategies will not only better serve their clients but also capitalize on a growing market segment with profound social impact.
For those managing portfolios or advising families affected by disabilities, the time to act is now. Educate, strategize, and integrate ABLE accounts into your financial playbook—because this is one trend that’s not just about dollars and cents, but about dignity, independence, and hope.
Sources:
- Commonwealth Savers insights on ABLE accounts
- ISS Market Intelligence data on ABLE market growth
- CNBC interviews with families and financial advisors impacted by ABLE legislation
If you want to stay ahead on transformative financial tools like ABLE accounts and other emerging opportunities, keep tuning into Extreme Investor Network for exclusive insights you won’t find anywhere else.
Source: Trump’s ‘big beautiful bill’ and other laws benefit ABLE accounts