ABLE account (Achieving a Better Life Experience — § 529A)
Tax-advantaged savings account for individuals with a qualifying disability whose onset was before a statutory age. First $100,000 is disregarded for Supplemental Security Income (SSI) asset purposes; funds are always disregarded for Medicaid. SECURE 2.0 raises the age-of-onset cap from 26 to 46 starting January 1, 2026.
An ABLE account (Achieving a Better Life Experience, IRC § 529A) is the disability-planning counterpart to a 529 plan. Contributions are after-tax; earnings grow federally tax-free for **qualified disability expenses** — housing, transportation, health, assistive technology, education, employment support, basic living. The 2026 annual contribution limit is $20,000, plus an additional "ABLE to Work" contribution up to the federal poverty line for a one-person household if the beneficiary is employed and not contributing to a retirement plan.
The crucial feature: **the first $100,000 in the account is disregarded for Supplemental Security Income (SSI) asset purposes**, and funds are always disregarded for Medicaid eligibility purposes. This breaks a decades-old trap where a disabled beneficiary inheriting or saving even modestly would lose means-tested benefits.
**SECURE Act 2.0 § 124 raises the age-of-onset cap from 26 to 46 starting January 1, 2026** — a huge expansion. Roughly 6 million additional Americans whose disability onset was in their 30s or 40s — many veterans with service-connected injuries, adults diagnosed with multiple sclerosis or early-onset Parkinson's, adults with traumatic-brain-injury onset in mid-life — become eligible. If you or a family member might qualify under the new age cap, waiting until 2026 is worth the delay.
ABLE accounts can interact with a **Special Needs Trust ()**. A third-party SNT (funded by parents or grandparents) can in turn fund an ABLE account for the beneficiary without the SSI-asset interaction. This is particularly powerful because ABLE accounts can pay for housing without reducing SSI — a restriction that applies inside SNTs.
Tagged 🟢 — opening an ABLE account is DIY. In Virginia, use the ABLEnow program (administered by Virginia529); in West Virginia, use WV ABLE.
State-specific notes
IRC § 529A. SECURE 2.0 § 124 raises onset-age cap from 26 to 46 effective January 1, 2026. First $100,000 disregarded for SSI; all funds disregarded for Medicaid. $20,000 annual contribution cap for 2026, plus ABLE-to-Work add-on for employed beneficiaries.
Virginia's ABLEnow program is administered by Virginia529 and is nationally available (non-residents can enroll). Contributions to ABLEnow qualify for a $2,000 annual VA income-tax deduction under Va. Code § 58.1-322.03(8).
West Virginia has its own WV ABLE program. No state income-tax deduction is specifically tied to WV ABLE, but contributions are federally advantaged and SSI/Medicaid rules apply identically.
Alabama's ABLE program is the Alabama ABLE Savings Plan (alabamaable.gov), administered by the Alabama State Treasurer's Office. Alabama allows a state income-tax deduction up to $5,000 per taxpayer per year ($10,000 joint when both contribute). Federal SSI non-countability up to $100,000 and the 2026 ABLE Age Adjustment Act expansion (onset age raised to 46) apply in Alabama without state variance.