Employment rates for individuals with disabilities have been increasing, reaching an all-time high of 42.5% in November. However, awareness of ABLE accounts remains low, with only about 2% of U.S. employees understanding their benefits.
ABLE accounts allow individuals with disabilities to save up to $100,000 without losing eligibility for needs-based programs like Medicaid or Supplemental Security Income (SSI). Distributions from these accounts are tax-free when used for qualifying expenses such as housing and education.
The eligibility age for ABLE accounts will increase from 26 to 46 starting January 1, 2026, allowing approximately 14 million more individuals to qualify. Despite this, only 1.7% of eligible individuals had opened an ABLE account as of April 30. The contribution limit will also rise to $20,000 in 2026, providing a significant opportunity for savings without jeopardizing government benefits.
Experts emphasize that ABLE accounts can be a crucial financial tool for individuals with disabilities, enabling them to build savings and achieve greater economic stability