More People Eligible for ABLE Accounts in 2026 (Secure 2.0)

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On December 29, 2022, Biden signed H.R.2617, the Consolidated Appropriations Act of 2023, into law. Hidden within this appropriations bill are several retirement provisions under the section named “Division T – The SECURE 2.0 Act of 2022” (PDF Page 817).

In this series, I am reviewing the major changes created by this act. This article is about “SEC. 124. MODIFICATION OF AGE REQUIREMENT FOR QUALIFIED ABLE PROGRAMS” (PDF Page 856).

ABLE savings accounts (short for “Achieving a Better Life Experience savings accounts”) allow people with disabilities to save and invest while maintaining eligibility for most state and federal aid. In addition, ABLE accounts offer tax-advantaged saving and investing, which are superior to the taxation of special needs trusts.

Prior to this amendment, ABLE accounts could only be opened for a beneficiary who became blind or disabled before age 26. This amendment raises that age to 46 starting in 2026.

This means that those who are disabled later in life, for example veterans disabled in military service, can still qualify for this tax-savings vehicle.

The full text of this amendment is:

(a) IN GENERAL.—Section 529A(e) is amended by striking ‘‘age 26’’ each place it appears in paragraphs (1)(A) and (2)(A)(i)(II)
and inserting ‘‘age 46’’.

(b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2025.

To learn more about this unique account type, you might enjoy reading our article “ABLE Accounts: Tax-Advantaged Savings for People with Disabilities.”

Photo by Sarah Brown on Unsplash

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Chief Operating Officer, CFP®, APMA®

Megan Russell has worked with Marotta Wealth Management most of her life. She loves to find ways to make the complexities of financial planning accessible to everyone. She is the author of over 800 financial articles and is known for her expertise on tax planning.