On January 1, 2026, the ABLE account rules changed, and the planning opportunities for persons with disabilities strengthened because the age limit was increased. 

The ABLE Age Adjustment Act, introduced by Senator Robert P. Casey, Jr. in February 2021, modified Section 529A(e) of Title 26 of the Internal Revenue Code to define an eligible individual if “the individual is entitled to benefits based on blindness or disability under title II or XVI of the Social Security Act, and such blindness or disability occurred before the date on which the individual attained age 46.” This change from age 26 to age 46 became effective January 1, 2026.

More people with disabilities may now be eligible to save more money for their own use without an impact on their benefits, such as Medicaid and Supplemental Security Income (SSI). At the time of the passage of the ABLE Age Adjustment Act, PA Able estimated this will expand eligibility to an estimated six (6) more million Americans, including one  (1) million veterans. 

The contribution limit for PA ABLE accounts from all sources is $20,000. Pennsylvania residents can deduct up to $19,000 per year (tied to the annual gift tax limit) in PA ABLE contributions. These PA ABLE accounts are also exempt from Pennsylvania inheritance tax. 

PA ABLE balances over $100,000 can impact SSI benefits, but no federal means-tested benefits will be affected.

Go online to determine whether you or your loved one is eligible. An eligible individual or an authorized individual can open accounts. You may access the current PA ABLE Savings Program Disclosure Statement for details on how the PA ABLE Savings Program works. 

According to a new release from Pennsylvania State Treasurer Stacy Garrity, PA ABLE is “the fifth largest ABLE program in the nation, with more than 11,500 accounts and over $185 million saved.”