ABLE (Achieving a Better Life Experience) AGE ADJUSTMENT ACT Raises ABLE age from 26 to 46
ABLE (Achieving a Better Life Experience) accounts are designed to enable individuals with disabilities to save for and pay for disability-related expenses. To establish an account, under current law an individual must have a qualifying impairment that began before the age threshold of 26. However, buried on page 2155 of the recently minted omnibus Congressional spending package, the law increased the age of disability onset from 26 to 46. This new law will go into effect January 2026. As a result, beginning in 2026 persons who had onset of disability after age 25 but before age 46 will now also be able to qualify for an ABLE savings account.
In 2023, the maximum annual account contribution to ABLE accounts was raised from $16,000 to $17,000. But, people with disabilities who are employed can save some of their earnings in addition to the gift tax amount of $17,000. ABLE accounts allow people with disabilities to save up to $100,000 without forgoing eligibility for Social Security and other government benefits. Medicaid can be retained no matter how much is in the accounts.
These accounts are valuable savings tools for persons with disabilities. As of September 2022, there were more than 131,000 ABLE accounts open with $1.133 billion in assets, according to ISS Market Intelligence. This increase in age threshold to 46 will allow more individuals to use ABLE accounts in the future.
ABLE accounts are just one tool we can use in special needs planning. If you have special needs planning questions, call our office today at 480-922-1010 or email info@bivenslaw.com to schedule your consultation. We have significant experience with public benefits and special needs planning and can help you and your family craft the best plan to take care of your Arizona loved one with special needs or disability.
-Stephanie A. Bivens, Esq., CELA
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