A major change to federal savings law took effect Jan. 1, 2026, and an estimated one million veterans are newly eligible for a financial tool most have never heard of.
The ABLE Age Adjustment Act expanded eligibility for ABLE accounts, which are tax-advantaged savings accounts designed for people with disabilities. The act raised the qualifying age of disability onset from 26 to 46. That single change is expected to make roughly six million more Americans eligible nationwide, with veterans representing one of the largest newly qualified groups.
If you’re a veteran with a service-connected or non-service-connected disability that began before your 46th birthday, this may apply to you. Here is how it works and why it matters.
What Is an ABLE Account?
ABLE stands for Achieving a Better Life Experience. Created by the ABLE Act of 2014, these accounts function similarly to 529 college savings plans but are designed specifically for individuals with disabilities.
Money deposited into an ABLE account grows tax-free, and withdrawals are also tax-free when used for qualified disability expenses. Those expenses are defined broadly and include housing, transportation, health care, assistive technology, education, employment training, legal fees and basic living expenses related to the disability.
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The critical feature for veterans on means-tested benefits: Up to $100,000 in an ABLE account is not counted as a resource for Supplemental Security Income purposes. That means you can save well beyond SSI’s normal $2,000 asset limit without losing eligibility. ABLE savings are also excluded from net worth calculations for VA Pension benefits, and any amount saved in an ABLE account is disregarded for Medicaid eligibility.
What Changed Jan. 1, 2026
Before this year, you could open an ABLE account only if your disability began before age 26. That cutoff excluded most veterans, since most service-connected disabilities develop during or after military service, often well into a veteran’s late 20s, 30s or 40s. The ABLE Age Adjustment Act, passed as part of the SECURE 2.0 Act in December 2022, raised that threshold to age 46 effective Jan. 1, 2026.
The annual contribution limit also increased to $20,000 for 2026. Anyone can contribute to your account -- family, friends, employers -- and there are no income limits on who can open one.
Veterans who work and do not participate in an employer-sponsored retirement plan may be able to contribute even more under the ABLE-to-Work provision, up to an additional $15,650 in the continental U.S.
Who Qualifies
To open an ABLE account under the expanded rules, you must have a disability that began before age 46 and that results in marked and severe functional limitations expected to last at least 12 months. You can qualify through one of two paths: You already receive SSI or Social Security Disability Insurance based on a qualifying disability, or you obtain a signed disability certification from a licensed physician confirming the onset and severity.
An important distinction for veterans: A VA disability rating does not automatically make you ABLE-eligible. The ABLE program uses Social Security Administration medical criteria, not the VA’s Schedule for Rating Disabilities. A veteran rated at 100% by the VA may still need a physician’s certification to open an ABLE account if they are not receiving SSI or SSDI. The ABLE National Resource Center provides a sample physician certification form on its website.
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How ABLE Accounts Interact with VA Benefits
Here is where ABLE accounts become especially valuable for veterans. Service-connected VA disability compensation is not means-tested, so those payments are unaffected by ABLE account balances regardless. But for veterans receiving the VA Pension -- the non-service-connected, means-tested benefit -- ABLE savings are excluded from the net worth calculation. That means a veteran can build savings in an ABLE account without risking a reduction or loss of their pension.
Family members and friends can also contribute to a veteran’s ABLE account without those contributions counting against the veteran’s VA Pension eligibility. The funds supplement but do not replace existing benefits, and distributions for qualified disability expenses are tax-free at the federal level. Some states also offer state income tax deductions or credits for ABLE contributions.
How to Open an Account
ABLE programs are administered at the state level, but most are open to residents of any state. Currently, 46 states and the District of Columbia operate ABLE programs, with 32 accepting enrollees nationwide. You can compare state plans, fees and investment options through the ABLE National Resource Center at ablenrc.org. Enrollment is typically completed online and requires basic information, including your Social Security number, date of birth, disability type, and -- if applicable -- a physician’s certification.
Each account owner can hold only one ABLE account at a time. Most plans offer multiple investment options ranging from conservative to aggressive, and some provide a prepaid debit card for direct spending on qualified expenses.
The Bottom Line
For years, the age-26 cutoff kept ABLE accounts out of reach for the majority of disabled veterans. That barrier is gone. If you developed a qualifying disability during or after military service and before your 46th birthday, you now have access to a savings tool that lets you build financial security without jeopardizing the benefits you depend on. The ABLE National Resource Center and your local VA benefits counselor can help you determine whether an account makes sense for your situation.
Sources: ABLE National Resource Center, “The ABLE Age Adjustment Act Fact Sheet,” “Veterans Brief: Maximizing Benefits with an ABLE Account,” “ABLE Account Contribution Limits for the Calendar Year”; Social Security Administration, “ABLE Programs Prepare for Expanded Eligibility”; The Arc of the United States, “ABLE Accounts Expanded in 2026”; Military.com, “How ABLE Accounts Can Help Veterans and Military Households Save Money on Taxes”
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