Since Jan. 1, a major change in federal law has expanded access to tax-advantaged savings accounts for people with disabilities, yet many Veterans may not realize they are now eligible. The update comes through the ABLE Age Adjustment Act, which allows more individuals to open and use ABLE accounts without risking essential benefits.
ABLE accounts were created under the Achieving a Better Life Experience Act of 2014 to help individuals with disabilities save money while maintaining access to programs like Supplemental Security Income and Medicaid. These accounts allow funds to grow tax-free and be used for qualified expenses such as housing, transportation, education, and healthcare.
The most important change involves the age requirement tied to when a disability begins. Previously, individuals only qualified if their disability started before age 26. Under the updated law, that threshold has been raised to age 46, expanding access to millions. According to Military.com, nearly one million Veterans may now qualify under the updated rules.
The change works by adding a 20-year window to the eligibility requirement, bringing in people who were previously excluded. A huge number of disabilities happen later in life, not in childhood or early adulthood. This includes Veterans who develop PTSD, chronic pain, or injuries after service, as well as individuals diagnosed with conditions like multiple sclerosis, Parkinson’s, or cancer in their 30s or 40s. It also includes workers injured on the job in their 30s and people dealing with long-term conditions that take time to fully develop. Under the previous rules, these individuals did not qualify because their disability began after age 26. With the updated age limit, many now meet the requirements.
For many Veterans, this removes a long-standing barrier. Service-related disabilities do not always appear early and can develop over time due to physical strain, exposure, or long-term health conditions. Under the previous rules, those individuals were often excluded from using ABLE accounts. Now, many qualify.
The expansion also addresses a financial challenge tied to federal assistance programs, which often have strict asset limits. Saving even modest amounts could put benefits at risk. ABLE accounts provide a way to build savings without those funds being counted against eligibility limits, giving Veterans more flexibility and control.
To qualify, Veterans must still meet Social Security’s definition of disability, meaning the condition must result in significant functional limitations and last at least 12 months. Income and employment status do not affect eligibility.
With the new age limit now in place, those who were previously excluded may now have access to a valuable financial tool. California Veterans and residents can visit the state’s dedicated portal, CalABLE, for more information.
Author: Rikki Almanza
Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.
