Good News for Families Supporting a Loved One With a Disability: The 2026 ABLE Account Change
If you love someone with a disability, you have probably spent a lot of energy worrying about how to help them financially without putting their benefits at risk. We want to share some genuinely good news. A quiet 2026 law change opened a valuable savings tool to millions more families, and it can make special needs planning in Seattle a little easier and a lot more hopeful.
First, a quick primer for anyone new to these accounts. An ABLE account is a special savings tool for people with disabilities, created by a federal law called the ABLE Act. It exists to solve a problem families have faced for years: Most benefit programs cut off support once a person saves more than a small amount, which left people with disabilities unable to build any real financial cushion. An ABLE account lets your loved one save and invest money for everyday needs, and most of those savings do not count against benefits like SSI and Medicaid. Families typically use one to cover housing, education, transportation, and other living expenses without jeopardizing the support their loved one relies on.
So what changed in 2026? A few updates made these accounts available to far more families and improved how they work. Here is what is worth knowing.
The age rule grew from 26 to 46. For years, only people whose disability began before age 26 could open an ABLE account. As of 2026, that age moved to 46, which welcomes about six million more people, including many who became disabled later in life. Your loved one may now qualify for the first time.
Far more families can now access the benefit protection. The expanded age rule matters because of what an ABLE account protects against. Programs like SSI and Medicaid usually stop once savings cross a low limit, often just a few thousand dollars. Money in an ABLE account does not count the same way, so a group of families who were previously shut out can now help a loved one build a cushion without that worry hanging over them.
The money stays flexible and grows tax-free. Funds can go toward housing, education, transportation, technology, and everyday needs. Contributions can come from the person, from family, or from friends, up to an annual limit, and any growth in the account is tax-free as long as it is spent on qualified disability expenses.
It works alongside a special needs trust, not instead of one. Think of them as partners. A trust can hold larger amounts and an inheritance, while the ABLE account covers day-to-day spending your loved one can often manage more directly. Together they protect benefits and offer a real sense of independence.
Older plans deserve a fresh look. A few rules shifted in 2026. A special needs trust written years ago may not match today's options, and the new eligibility might include a family member who was left out before. A short review with someone who knows the rules can often tell you within minutes whether an update makes sense for your family.
The most reassuring part is that you do not have to sort out special needs planning alone. ABLE accounts and special needs trusts work best when a family reviews them together and keeps them current, and that coordination is exactly the kind of planning we are here to help with. The right mix protects your loved one's benefits today and builds security for the years ahead. That balance is the heart of special needs planning in Seattle.
If you would like to explore how an ABLE account, a special needs trust, or both might fit your family's plan, we would be glad to talk it through with you. For many families, the 2026 changes are a real opening to build something steadier for a loved one's future, and we would be honored to help you make the most of it. Give our office a call at 206-925-3242 to discuss the best move for your situation.
