Summary and Key Points: National Security Columnist Steve Balestrieri details pivotal 2026 updates to the Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act.
-Effective January 1, 2026, the qualifying age for disability onset rises from 26 to 46, granting eligibility to 6 million more Americans, with veterans being a primary beneficiary group.
A Sailor assigned to the Zumwalt-class guided missile destroyer USS Michael Monsoor (DDG 1001) reunites with a family member following routine operations in the U.S. 3rd, and 7th Fleet areas of operations to maintain a free and open Indo-Pacific, Oct. 3. An integral part of the U.S. Pacific Fleet, U.S. 3rd Fleet leads naval forces in the Indo-Pacific and provides the realistic, relevant training necessary to execute the U.S. Navy’s role across the full spectrum of military operations. U.S. 3rd Fleet works together with allies and partners to advance freedom of navigation and overflight, the rule of law and other principles that underpin security for the Indo-Pacific region. (U.S. Navy photo by Mass Communication Specialist 2nd Class Lordin Kelly)
-These accounts permit up to $19,000 in annual tax-free savings for Qualified Disability Expenses (QDEs)—including housing and healthcare—without triggering the $2,000 asset limit for VA pension, Medicaid, or SSI.
-This expansion ensures veterans can grow investments tax-exempt while maintaining essential means-tested government benefits.
Changes In ABLE Accounts Law Benefits For Veterans With Disabilities
The Stephen Beck, Jr., Achieving a Better Life Experience Act (ABLE) became law on December 19, 2014. The law aims to ease financial strain for individuals with disabilities by making tax-free savings accounts available to cover qualified disability expenses.
ABLE accounts allow veterans with disabilities to save up to $19,000 annually (in 2026) for disability-related expenses without losing eligibility for VA pension, Medicaid, or SSI.
These tax-advantaged accounts enable tax-free growth and withdrawals for housing, healthcare, and transportation.
ABLE accounts are designed specifically for individuals with disabilities, and this year, the government raised the qualifying age from 26 to 46. The change is expected to make 6 million more Americans eligible nationwide, with veterans among the largest newly eligible groups.
191009-N-WB795-1126 GREAT LAKES, Ill. (Oct. 9, 2019) Electronics Technician 1st Class Troy Kruyer performs the push-ups portion of the physical readiness test inside Pacific Fleet Drill Hall at Recruit Training Command. More than 35,000 recruits train annually at the Navy’s only boot camp. (U.S. Navy photo by Chief Mass Communication Specialist Brandie Nix/Released)
Veterans with a qualifying disability developed before age 46 (starting 1/1/2026) are eligible.
“Not enough people know about ABLE accounts,” Bjorn Amundson, with Quarry Hill Advisors in St. Paul, Minnesota, said. “It could be housing. It could be for education. It could be for special equipment. As long as it’s somehow related to a disability, it’s tax-free coming out.”
Benefits Of Having An ABLE Account
According to the ABLE National Resource Center, “Veterans with disabilities may receive benefits from the Department of Veterans Affairs (VA), the Department of Defense (DoD) military retirement program, or the Social Security Administration (SSA). “
Although many Veterans with disabilities may not receive any of these benefits, they may still be eligible for an ABLE account to save and invest tax-free. The disability status for an ABLE account is determined using a different criterion than for the VA or DoD. It is also different from the SSA adult definition of disability, which considers work activity.
Military veterans and family members with a disability may be eligible to open an ABLE account regardless of benefit status, disability rating, or employment status.
Key Benefits For Veterans With Disabilities
Asset Protection: Funds in an ABLE account are not counted toward the $2,000 resource limit for many means-tested benefits, thereby protecting eligibility for programs such as VA Pension, HUD-VASH, and Medicaid.
Tax Free Savings and Investment Growth Advantages: Earnings on investments grow tax-free, and withdrawals are tax-free when used for Qualified Disability Expenses (QDEs).
Flexible Spending: QDEs include basic living expenses, housing, transportation, education, employment training, and assistive technology.
Starting in 2026, the disability onset age requirement increased from 26 to 46, expanding access to millions more individuals, including many veterans.
Eligibility and Enrollment Criteria
Veterans must have a qualifying disability that began before age 46 (before age 26 if setting up before 2026).
Automatic qualification parameters: Those veterans receiving SSI or SSDI automatically qualify.
A doctor can acquire certification. If not receiving SSI/SSDI, a veteran can still qualify with a doctor’s diagnosis of a “marked and severe” functional limitation.
A candidates assigned to Delta Company, Officer Candidates Class-221, breaks the surface of the murky water of ‘The Quigley’ at Brown Field, Marine Corps Base Quantico, Va., on March 15, 2016. The mission of Officer Candidates School (OCS) is to “educate and train officer candidates in Marine Corps knowledge and skills within a controlled, challenging, and chaotic environment in order to evaluate and screen individuals for the leadership, moral, mental, and physical qualities required for commissioning as a Marine Corps officer.” (U.S. Marine Corps Photo by Cpl. Patrick H. Owens/Released)
U.S. Army Soldier Pfc. Eric Rivera, assigned to Delta Troop, 1st Platoon, Multipurpose Company, 3rd Squadron, 4th Cavalry Regiment, 3rd Mobile Brigade, 25th Infantry Division, pulls security before a Ghost-X drone conducts reconnaissance. The mission was part of the Joint Pacific Multinational Readiness Center Rotation 26-01, which integrated U.S. forces, multinational partners, and joint capabilities to train tactics, techniques, and procedures required to dominate jungle and archipelagic terrain during large-scale combat operations. (U.S. Army photo by Pfc. Jose Nunez)
Individuals can open ABLE Accounts. Veterans can open an account in any state, regardless of where they live. But because individual states run the program, its specifics may vary by location.
“Certain states allow tax credits or state income tax deductions for ABLE contributions by state residents, while others do not. Several minor aspects differ as well, such as minimum contribution requirements or the amount of monthly ACH withdrawals permitted per account,” according to Armed Forces Mutual.
About the Author: Steve Balestrieri
Steve Balestrieri is a National Security Columnist. He served as a US Army Special Forces NCO and Warrant Officer. In addition to writing on defense, he covers the NFL for PatsFans.com and is a member of the Pro Football Writers of America (PFWA). His work was regularly featured in many military publications.
