Back in 2022 Congress passed a bill that is about to go into effect. The ABLE Age Adjustment Act decreed that as of January 2026 the age threshold for Achieving Better Life Experience (ABLE) accounts would increase from 26 to 46.
The ABLE Act has been around for more than a decade now, so if you’re an SSI recipient you’re hopefully already aware of ABLE accounts. In case you need reminding, they are tax-free savings accounts in which families can contribute up to $19,000 annually and have up to $100,000 of the account balance exempt as a resource for the SSI benefit program and certain Medicaid programs. Anyone can make contributions to an eligible individual’s ABLE account and contributors may be eligible for an income tax deduction per contributor for State tax purposes in Maryland. ABLE account funds can be used for any “qualified disability expenses”. That’s a remarkably lengthy list and includes expenses for education; housing; transportation; employment training and support; assistive technology; and essentially anything which help improve health, independence, and/or quality of life.
Up to this point it’s been the case that it’s only for individuals with significant disabilities and whose disability onset occurred prior to age 26. You could always be over age 26 and qualify but needed documentation that verified you met the age of onset criteria. From January the same rules around disability remain but now you can qualify if your disability onset was prior to the age of 46.
The other positive change for ’26 is an increase in allowable contributions. From next month families can top up those accounts by up to $20,000 annually. Individual account holders who are working can also contribute an additional $15,650 if they so choose.
If you’re one of the expected six million people who are newly eligible and you’d like to set up your account, you can do so right away, there’s no need to wait until the new year. If you’re a Maryland resident, here’s where you can start: Home – MarylandABLE