The One Big Beautiful Bill Act, signed July 4, 2025, locked in three ABLE account benefits that were set to expire. Here's what changed and what it means for your family.
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A Quick Refresher: What Is an ABLE Account?
An ABLE account is a tax-advantaged savings account for individuals with disabilities. It lets people with disabilities set aside money without risking the loss of means-tested federal or state benefits like SSI and Medicaid.
It's also tax-advantaged in the traditional sense. Growth inside the account is tax-deferred, and withdrawals used for qualified disability expenses come out completely tax-free. If you have a disability, or a loved one does, it's a powerful tool. For a full walkthrough of how it works in Texas, see our Texas ABLE Account: The Complete Guide.
Before and After the OBBBA
Before
- ABLE to Work was set to expire at the end of 2025
- 529-to-ABLE rollovers were set to expire
- The Saver's Credit for ABLE contributions was temporary
- Disability had to begin before age 26
Now
- ABLE to Work is permanent
- 529-to-ABLE rollovers are permanent
- The Saver's Credit is permanent, and enhanced in 2027
- Disability must begin before age 46 (SECURE 2.0)
The Three Biggest Changes
ABLE to Work Is Now Permanent
The ABLE to Work provision encourages people with disabilities to work in whatever capacity is available to them by letting them contribute their own earnings to their ABLE account without jeopardizing means-tested benefits.
The standard annual contribution limit is $20,000 for 2026. A beneficiary who works, and isn't contributing to an employer retirement plan, can add more on top of that: up to their earnings for the year or the federal poverty level, whichever is less. For 2026, that's an extra $15,650 in the contiguous U.S.
This provision was set to expire. The One Big Beautiful Bill Act made it permanent.
529-to-ABLE Rollovers Are Now Permanent
A 529 account is a tax-advantaged college savings account. If a 529 beneficiary is disabled and won't be attending college, or has leftover funds after college, those dollars can be rolled over into an ABLE account instead of sitting locked up in the 529. Rollovers count toward the ABLE account's annual contribution limit.
This option was originally created by the Tax Cuts and Jobs Act of 2017 and was set to sunset. The One Big Beautiful Bill Act made it permanent.
Whether a rollover makes sense for your family is a separate question. It depends heavily on your circumstances, and it isn't always the right move.
The Saver's Credit Now Covers ABLE Accounts, Permanently
The Saver's Credit is a tax credit for lower-income savers who contribute to a qualified retirement account like a 401(k) or an IRA. It offsets some of the cost of saving.
ABLE accounts now qualify for this credit alongside 401(k)s and IRAs. If the beneficiary contributes to their own ABLE account, they may be eligible. Starting in 2027, the credit can apply to up to $2,100 of contributions.
Three benefits that were about to disappear are now here to stay.
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A Related Change: SECURE 2.0 Raises the Age of Eligibility
Separately from the One Big Beautiful Bill Act, a SECURE 2.0 provision took effect on January 1, 2026, and changed the age-of-onset rule for ABLE eligibility. Previously, a disability had to begin before age 26 to qualify. That cutoff is now age 46.
The Bottom Line
ABLE accounts are still relatively new. They were created in 2014, and the rules keep evolving with regular updates and tweaks. These are some of the biggest changes so far, but it's worth staying alert for more.
If you have questions about how these updates affect your family's planning, schedule a quick call and we'll walk through it together.
Free Guide
The Special Needs Family Financial Planning Guide
An ABLE account is one piece of the puzzle. This guide walks through the priorities for a complete, coordinated plan: ABLE accounts, trusts, benefits, taxes, and retirement.
Download the Free GuideThis blog is for educational purposes only. It is not personal legal, tax, or financial advice. Work with a qualified financial planner or advisor to figure out how these changes apply to your situation. This blog was posted on August 3rd, 2026. It was edited and uploaded on October 5th, 2026 to correct the ABLE contribution limits and improve visual appeal.