PA ABLE Accounts to Expand Eligibility in January 2026
More Pennsylvanians, including many Veterans, will soon have access to increased savings opportunities through PA ABLE’s expanded eligibility. Beginning January 2026, individuals of any age will be able to open an account if their disability occurred before age 46. Currently, people can only open a PA ABLE account if their disability started before age 26, making this 20-year eligibility expansion incredibly impactful.
Established under a 2014 federal law, signed by President Obama, ABLE (Achieving a Better Life Experience) accounts offer people with disabilities the opportunity to save up to $100,000 without sacrificing eligibility for Social Security and other government benefits. (In PA these accounts are referred to as PA ABLE accounts.) The $100,000 limit does not apply to Medicaid eligibility; there is no savings limit with ABLE accounts to maintain Medicaid eligibility. In addition to protecting critical benefits for individuals with disabilities, PA ABLE accounts allow for savings for the future, increases independence, provides peace of mind to loved ones, and permits others to add money to the account. There are many benefits to PA ABLE accounts that can be found here.
The expansion to people whose disability occurred before age 46 will allow so many more people to access the benefits of PA ABLE accounts. The expansion in age by twenty years will be especially beneficial to Veterans who often suffer a disability after the current age threshold of 26.
Since the first PA ABLE accounts opened in 2017, the program has grown to 11,000 accounts with more than $160 million saved. This 20-year expansion in eligibility will help support even more Pennsylvanians with disabilities and their families.
PA ABLE accounts offer multiple savings and investment options, including an interest-bearing checking account. Account owners can contribute up to $19,000 per year without the savings impacting on important disability benefits. Those savings can be used for disability-related expenses like groceries, rent, healthcare, transportation, education, assistive technology, and more. Interest earned on the accounts is tax-free.
Federal rules regarding how the accounts were used were set to expire at the end of this year, but recent federal legislation makes them permanent. Some of the permanent rules include permitting ABLE account holders who are employed to save extra money in their accounts if they don’t participate in an employer sponsored retirement account like a 401(k) or 403(b). Another permanent rule includes the provision to roll over funds from a traditional 529 savings plan into an ABLE account. That provision is designed to help families that set up college savings plans before knowing their child had a disability.
The above changes to ABLE accounts are the result of H.R. 1, signed into law by the President this summer, and the ABLE Age Adjustment Act.
Sign up for updates related to the ABLE age expansion at www.paable.gov or call 855-529-2253 to learn more.
