Our team of estate planning and elder law attorneys has been busy over the past couple of years discussing the benefits of ABLE accounts with many of our clients.They can be incorporated into a loved one’s estate planning strategy to allow individuals with disabilities to save money and plan for the future without jeopardizing existing benefits.

Here is even more good news: There are several significant changes on the horizon designed to expand eligibility and increase

contribution opportunities, making it worthwhile for individuals to revisit their ABLE eligibility.

All of this is courtesy of the One Big Beautiful Bill Act and the ABLE Age Adjustment Act.

ABLE Accounts: What’s Changing?

According to the Centers for Disease Control, roughly one in four American adults lives with a disability. That is roughly 70 million people, and most rely on public assistance benefits such as Medicaid and Supplemental Security Income (SSI). Perhaps you have a loved one living with you right now who falls into this category, and it pains you to see them face one financial limitation or hurdle after the next as you and they struggle to cover basic living expenses, healthcare, and housing. ABLE accounts may be the answer.

Achieving a Better Life Experience accounts are tax-free savings or investment accounts that allow individuals who have become disabled to build, manage, and even have greater control over their wealth without worrying about how it may impact their eligibility for government assistance programs like Medicaid, SSI, or the Supplemental Nutrition Assistance Program (SNAP). 

There are numerous existing benefits to ABLE accounts. They can be established by the person with a disability or a family member supporting them, as they may not be able to do it themselves. Money deposited into these accounts can be used for any expenses related to the disability, including transportation, health and wellness, food, education, housing, legal fees, assistive tech, and more.

Additional benefits include, but are not limited to the following:

• Additional independence and economic security
• Tax-free savings opportunities by allowing the money to grow tax free
• Ease of access and low cost
• The ability to simplify daily bill pay and record-keeping
• The ability to plan for individuals with disabilities
• 529 college accounts can be rolled in without a tax penalty if the rollover stays within the annual contribution limit
• Additional tools for estate planning and financial planning
• ABLE and Special Needs Trusts can work together to minimize fees

Starting in 2025 and over the next two years, legislative changes will make ABLE accounts more accessible—and more valuable.

1. The annual contribution limit has already been increased to $19,000.
2. The ABLE-to-Work provision is now permanent (it was slated to expire in 2025).  This provision allows employed individuals with disabilities to contribute additional income to their ABLE accounts beyond the $19,000 annual limit (up to the federal poverty level or their earnings for the year, whichever is less) if they are not contributing to a defined contribution retirement plan.
3. Tax-free rollovers from 529 college savings plans are also now permanent.
4. ABLE account contributions are now eligible for the Saver’s Credit.
5. Starting in 2026, the ABLE Age Adjustment Act raises the eligibility age from 26 to 46.
6. Beginning in 2027, the Saver’s Credit has increased maximum eligible contributions ($2,100) and credit amounts ($1,050).

This website Texas ABLE | Savings Program for Texans with Disabilities provides information on how to enroll and open an ABLE account in Texas.

Leigh Hilton PLLC Would Love to Help Educate Your Family on ABLE Accounts

When you have decided to discuss your estate planning needs for the first time and you have a family member with a disability, it is natural to wonder where you should start. The easy answer is to contact an estate planning attorney. After all, protecting everyone you love and everything you own requires proper guidance from someone who can help you make informed decisions and tailor a plan that covers you and your family’s needs from A to Z.

Call Leigh Hilton PLLC in Denton, and we will work with you to determine the best strategy for your unique situation. Proper planning of an estate helps ensure your wishes are honored. We always want to be your first call for any estate planning needs.