As a parent or caregiver to someone with special needs, you’re likely familiar with the financial challenges that come with planning for the future. Thankfully, recent changes brought about by new legislation—affectionately called the “big beautiful bill”—can significantly ease these financial burdens.
Here’s everything you need to know in simple, clear terms:
Understanding ABLE Accounts
Before we dive into what’s new, let’s quickly refresh on what ABLE accounts are.
ABLE (Achieving a Better Life Experience) accounts are special savings accounts that allow individuals with disabilities and their families to save money without losing essential government benefits like Medicaid, Social Security Disability Insurance (SSDI), or Supplemental Security Income (SSI).
Key benefits include:
- Savings grow tax-free.
- Withdrawals for qualifying expenses (housing, health care, transportation, therapy) are tax-free.
- Up to $100,000 in an ABLE account doesn’t impact SSI eligibility.
How the “Big Beautiful Bill” Helps Families Like Yours
Recently, President Donald Trump’s “big beautiful bill” has made ABLE accounts even better. Here’s what has changed:
1. Expanded Eligibility (Starting January 2026)
Before, individuals needed a diagnosed disability before age 26 to qualify. Now, thanks to the ABLE Age Adjustment Act, individuals diagnosed before age 46 will be eligible.
This change is huge—it opens ABLE accounts to approximately 7 million more people, including adults who developed conditions such as multiple sclerosis, PTSD, traumatic brain injuries, and neurological disorders later in life.
2. Permanent Tax Advantages
Trump’s bill permanently extends several key tax advantages, making ABLE accounts even more appealing:
- Higher Annual Contributions
You can currently contribute up to the annual gift tax exclusion ($19,000 in 2025), a limit likely to rise with inflation. - 529 College Savings Rollover
If your child or loved one has unused money in a 529 college savings account, you can now roll it into an ABLE account. Imagine you’ve saved thousands for education, but your child develops a disability. You can transfer those savings into their ABLE account without losing the tax benefits or affecting their government assistance eligibility. - Saver’s Credit for Low-Income Families (Starting 2027)
Families contributing to ABLE accounts may qualify for a tax credit of up to $1,050 per year, giving additional relief to those who need it most.
Real-Life Impact: Brandon’s Story
Take Brandon Dickerson as an example. At just 34, Brandon suffered a brain aneurysm, drastically changing his and his family’s lives. His sister, Geneva, is now looking into opening an ABLE account. The new bill makes saving for Brandon’s speech and physical therapies more manageable since insurance alone doesn’t cover all the costs.
This story reflects the experience of many families nationwide, making these legislative changes even more critical.
Why This Matters to You
These legislative improvements offer peace of mind and increased financial security. ABLE accounts, now easier to access and more beneficial, can significantly enhance the quality of life for your loved one with special needs, enabling you to focus less on financial stress and more on their growth, progress, and happiness.
Next Steps: Opening an ABLE Account
Ready to get started? Here’s how:
- Check eligibility: Remember, from January 2026, anyone diagnosed before age 46 is eligible.
- Select a state-managed ABLE program: Many states allow non-residents to open accounts. ABLEnow, managed in Virginia, is one popular option available nationally.
- Begin contributing: Family, friends, and even employers can contribute tax-free.
Final Thoughts
Thanks to the “big beautiful bill,” millions more families now have an opportunity to save smarter, protect their loved ones’ financial future, and reduce the stress often associated with caregiving responsibilities.
Stay informed, take advantage of these updates, and give your loved ones the future they deserve.
