A quiet shift in federal law just opened a much bigger door for St. Paul residents living with disabilities. ABLE savings rules now let people who developed qualifying disabilities before their 46th birthday open tax-advantaged ABLE accounts, up from the previous cutoff of age 26. The change, which took effect Jan. 1, 2026, could unlock tax-free savings for millions of Americans, and veterans and disability advocates in St. Paul say the money can help cover housing, education, or needed equipment.
What Changed And Who Becomes Eligible
According to Social Security Administration guidance, the ABLE Age Adjustment Act amends Section 529A of the tax code to raise the age-of-onset threshold from 26 to 46, effective Jan. 1, 2026. The agency says that the shift will make roughly six million more people eligible for ABLE accounts nationwide. In practical terms, that pulls in a large group of adults whose disabilities began later in life and who were previously shut out of the program.
Twin Cities Reaction
Locally, advisers and advocates say the new age cutoff plugs a long-standing hole in the safety net. As reported by KSTP, Bjorn Amundson of Quarry Hill Advisors in St. Paul said, "Not enough people know about ABLE accounts," and noted that the money can be used for housing, education, or special equipment and is tax-free when used for disability-related needs. For many Twin Cities veterans, that can mean finally having a place to stash savings without accidentally tripping benefit limits.
What ABLE Accounts Pay For
ABLE accounts let eligible people save and invest without jeopardizing means-tested benefits, and earnings grow tax-free. Withdrawals for "qualified disability expenses" are also tax-free when used for those purposes. Those expenses can include housing, transportation, education, assistive technology, caregiving and other daily living costs, according to ABLEnow. In other words, these are not niche accounts that only pay for medical gadgets; they can touch most parts of day-to-day life.
Why Now: Who Stands To Gain
Federal and state officials say veterans are a major group who stand to benefit from the rule change. In a press release, Connecticut’s treasurer and Sen. Richard Blumenthal said the expansion will allow an estimated six million more Americans, including roughly one million veterans, to use ABLE accounts, and state treasurers from Connecticut to South Carolina have been urging outreach since the change took effect. See the announcements from the Connecticut Treasurer’s Office and the South Carolina Treasurer. For veterans whose disabilities surfaced well into adulthood, the widened age window is the difference between having this tool and not having it at all.
Legal Details Veterans Should Know
Per the Social Security Administration, ABLE accounts allow Supplemental Security Income (SSI) recipients to hold up to $100,000 in the account without triggering the SSI asset limit, although rules differ by state. The ABLE National Resource Center warns that, after outstanding qualified disability expenses are paid, remaining ABLE funds may be subject to Medicaid reimbursement claims by the state, and those policies vary by program. The ABLE National Resource Center lists state-by-state details.
Veterans and families who think they qualify are urged to review their state ABLE program and compare fees, features and enrollment steps before opening an account. Programs like ABLEnow let eligible people open accounts online, and many state treasurer sites offer step-by-step guides. Veterans can also consult a county veterans service officer or a financial counselor to coordinate ABLE savings with VA and other benefits, so a well-intentioned move does not accidentally cost them existing support.
