ABLE Accounts: A Hidden Gem for Impact Investors and Long-Term Wealth Builders

In the ever-evolving landscape of financial planning, investors and advisors are increasingly seeking tools that align ethical impact with robust returns. The ABLE (Achieving a Better Life Experience) Account, a tax-advantaged savings vehicle for individuals with disabilities, has emerged as a compelling opportunity for both impact investors and long-term wealth builders. With a landmark expansion of eligibility set to take effect in 2026, ABLE accounts are poised to redefine financial inclusion while offering unique tax benefits that make them a strategic asset in holistic wealth strategies.

The 2026 Eligibility Expansion: Unlocking a New Market
For decades, ABLE accounts were restricted to individuals whose disabilities began before age 26. This limitation excluded millions of Americans who developed disabilities later in life, such as veterans with post-traumatic stress disorder or individuals with late-onset conditions like multiple sclerosis. The ABLE Age Adjustment Act of 2022, however, will raise the eligibility threshold to age 46 starting January 1, 2026. This change is projected to bring 6 million additional individuals into the ABLE ecosystem, including over 1.2 million veterans, creating a surge in demand for these accounts.

The expansion is not merely a policy shift—it's a seismic opportunity for investors. By broadening access, the ABLE program will catalyze a wave of financial empowerment for a demographic that has long been underserved. For advisors, this means integrating ABLE accounts into client portfolios as a tool for both disability financial planning and long-term wealth accumulation.

Tax Advantages: A Triple Win for Savers and Investors
ABLE accounts offer a rare trifecta of benefits: tax-free growth, tax-free withdrawals for qualified expenses, and asset protection. Contributions grow tax-free, and withdrawals are exempt from federal income tax if used for qualified disability expenses (QDEs), which include housing, transportation, education, and assistive technology. Crucially, funds in an ABLE account do not count as resources for means-tested benefits like SSI or Medicaid, allowing individuals to build wealth without jeopardizing essential support.

For investors, the tax incentives are equally compelling. The Saver's Credit, which provides a federal tax credit for low- to moderate-income contributors, can reduce the effective cost of contributions by up to 50%. Additionally, the ABLE-to-Work provision, made permanent by the 2022 “Big Beautiful Bill,” allows working individuals to contribute beyond standard limits, further amplifying savings potential. These features make ABLE accounts a unique intersection of impact and efficiency.

Growing Asset Base: A Catalyst for Growth
The ABLE ecosystem is already on an upward trajectory. As of Q1 2025, over 204,000 accounts held $2.4 billion in assets, with an average balance of $12,000. By 2026, analysts project a 50% increase in both accounts and assets, driven by the expanded eligibility and heightened awareness. This growth is not just incremental—it's structural. With 46 states and Washington, D.C. offering ABLE programs, the infrastructure is in place to support rapid adoption.

Why Now Is the Time to Act
The 2026 expansion represents a critical inflection point. For impact investors, the ability to support financial inclusion for a historically marginalized population while securing tax-advantaged growth is unparalleled. For long-term wealth builders, ABLE accounts offer a diversified, low-risk avenue to accumulate assets in a tax-protected environment.

Advisors should consider ABLE accounts as a complementary tool to traditional retirement vehicles. For example, rolling over funds from 529 college savings plans into ABLE accounts (up to annual limits) allows families to repurpose education savings for disability-related expenses without tax penalties. This flexibility is a game-changer for clients navigating evolving life circumstances.

Strategic Integration for Advisors
To fully leverage ABLE accounts, advisors must:
1. Educate clients on the 2026 eligibility expansion and its implications for veterans and late-diagnosed disabilities.
2. Highlight tax advantages, such as the Saver's Credit and ABLE-to-Work provisions, to maximize savings.
3. Integrate ABLE accounts with other tools like special needs trusts and 529 plans for comprehensive planning.
4. Monitor legislative trends, as ongoing policy support (e.g., the ENABLE Act) could further enhance ABLE utility.

Conclusion: A Win-Win for Impact and Returns
ABLE accounts are more than a financial product—they're a vehicle for social progress. By enabling individuals with disabilities to build wealth, access essential services, and maintain independence, these accounts create value for both savers and investors. As the 2026 expansion looms, now is the time to position ABLE accounts as a cornerstone of modern financial planning. For those who act swiftly, the rewards—both ethical and economic—are bound to compound.