Disabled workers are overlooking a powerful savings vehicle that could protect their government benefits

Employment has been climbing steadily in recent years for a growing segment of the American workforce — people with disabilities.

Yet a significant number of those workers are leaving valuable savings untapped, experts warn, because they are unfamiliar with a specialized financial tool designed for people with disabilities: the Achieving a Better Life Experience, or ABLE, account.

These tax-advantaged accounts can be opened by an individual who is disabled or by their authorized representative — such as a parent, legal guardian, or agent named in a power of attorney. A child or adult with disabilities can save up to $100,000 in an ABLE account without losing eligibility for needs-based programs like Medicaid or Supplemental Security Income.

Distributions from ABLE accounts are tax-free when used for qualifying disability-related expenses, which the IRS defines to include housing, education, transportation, and assistive technology, among other costs.

“Roughly 2% of employees in the United States understand what an ABLE account is, which is such an important vehicle for providing savings without jeopardizing government benefits,” said Voya Financial CEO Heather Lavallee, citing recent research from the firm.

More than 1 in 4 U.S. adults — over 70 million — live with a disability, according to 2022 data from the Centers for Disease Control.

“If you think about the special needs community, it’s the only minority group that anybody can join at any point in time,” Lavallee said in a recent CNBC interview.

The share of Americans with disabilities in the labor force reached an all-time high of 42.5% in November and stood at 41.1% in April, according to a recent analysis by the Kessler Foundation, a nonprofit focused on disability rehabilitation research.

ABLE account age eligibility increases in 2026

Sena Pottackal accepting an award from Disability:IN.

Courtesy: Disability:IN

Sena Pottackal, a 36-year-old PR consultant who lives with multiple disabilities including blindness, told CNBC she initially believed she did not qualify for an ABLE account.

“I was 27, and I was told that it was a savings account specifically for people who were 26 or younger,” she said.

In reality, ABLE account eligibility is based on the age at which the disability began, not the individual’s current age.

Starting Jan. 1, the age limit for eligibility rose from 26 to 46 years old.

“If they’ve acquired their disability at 46 or younger, they’re eligible, putting this back on my radar,” Pottackal said. “This could be a very valuable way for me to save for the future and develop financial and economic stability.”

Under the age expansion, roughly 14 million people are now eligible for ABLE accounts, according to data compiled by ISS Market Intelligence researcher Paul Curley. Yet as of April 30, only 1.7% of them had opened one.

ABLE account contribution limits rise in 2026

Individuals with disabilities have a meaningful opportunity to build savings through these accounts, experts say. The first $100,000 in an ABLE account is generally excluded from the $2,000 resource limit required to receive Supplemental Security Income benefits, unlike funds held in a 401(k) or IRA. SSI is a federal program that provides monthly payments to adults and children who are blind, have a disability, or are age 65 and older with limited income and financial resources.

“If they’re contributing to their 401(k), they might jeopardize some kind of benefits,” Lavallee said. “Putting the money into an ABLE program can be another great way to be able to drive that savings.”

ABLE accounts are state-run, similar to 529 college savings plans, and can be opened online through your home state or another state’s ABLE program website.

In 2026, the maximum annual contribution to an ABLE account is $20,000. Contributions may also be eligible for a tax credit of up to $1,050 this year.

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