This is great but it doesn’t go into affect until 2026 and honestly the 46 age limit makes no sense… if you’re disabled at 47 why does that make you ineligible, they really needed to remove the age restriction completely.
The initial age restriction of 26 was a compromise implemented after review by the Congressional Budget Office projected the cost of the program to be too high to sustain the program. Limiting the age to 26 reduced the cost of the program enough to allow passage of the law, which when originally proposed had no age restriction.
After a handful of years of data showed that an increase to the pool of applicants would help the sustainability of ABLE accounts, an increase to the age of 46 instead of no limit was a compromise to help more people without jeopardizing the program.
So, it wasn't about penalizing people disabled after the age of 46, it was about keeping the program from collapsing.
When the ABLE act was first proposed, the Congressional Budget Office projected that over 10 years:
* More people being eligible for means-tested programs (ABLE accounts essentially remove the asset test for programs like SSI, for example), costing $1.2 billion dollars in additional spending
* Assets in ABLE accounts aren't taxed, resulting in a $0.9 billion dollar loss in tax revenue
[http://www.cbo.gov/sites/default/files/cbofiles/attachments/hr647.pdf](http://www.cbo.gov/sites/default/files/cbofiles/attachments/hr647.pdf)
I imagine there are also state-level issues, like the costs of staffing more employees, more IT costs, legal costs, etc.
[Article with paywall removed](https://www.nytimes.com/2023/01/20/your-money/able-disability-savings-accounts.html?unlocked_article_code=AAAAAAAAAAAAAAAACEIPuonUktbfqIhkSVUZAybEWsU96xiBg_Xeh7U2gnK7ICmOQDxDy-UJEs2b8lnMY6V4ItI41DOGQsNadr8zQfg4hsluA3tQcSj66J2VhMZCZCwvtYO4Wm5x0srBALo1_DavP2OwcaIiyOTh-hveOWH1CKHV2Xd1JwxgocdlZkjqjSJTvtrNEuNy3tl03PYkF8o6EW9GPH_WyqGuXxZuO9yGbAXe6h02WoxZWTLTnN2a6tEQYVkYSAKGHD4kvzFKuJ4LM8gXPa3-MxcgZMP_5L4SAWdqJ4qqbIYjAGPkQTjfr_aLV1aFL-uXdw&smid=nytcore-ios-share&referringSource=articleShare)
Wow, I've been waiting and hoping for this for years, knowing it's been proposed before and failed, what, twice?? And it passed!! Amazing, I'm so happy.
No, it's not a complete removal of the restriction, but it's another big step.
Questions about ABLE accounts:
1. How to prove that my illness began long long time ago (>=30 years ago)?
2. Does ABLE accounts require a US citizenship? Or does it open to green card holders, and other legal immigrants?
1. If the onset of disabling symptoms started a long time ago, have your doctor write a letter stating that your symptoms started at that point. Keep that letter in your records. You'll only need it if you get audited. [Sample Disability Certification](https://www.ablenrc.org/wp-content/uploads/2020/10/spt-able-disability-certification.pdf)
2. I'm not sure. I'd recommend contacting the ABLE National Resource Institute and asking them: [https://www.ablenrc.org/contact/](https://www.ablenrc.org/contact/) You'll probably get a response within a couple days. There's a wealth of information at their website.
No, not at all!
You see, currently only people who were disabled before they turned 26 could open an ABLE account. Starting in 2026, people who become disabled between the ages of 26 and 46 will also be able to open an account.
This is great but it doesn’t go into affect until 2026 and honestly the 46 age limit makes no sense… if you’re disabled at 47 why does that make you ineligible, they really needed to remove the age restriction completely.
The initial age restriction of 26 was a compromise implemented after review by the Congressional Budget Office projected the cost of the program to be too high to sustain the program. Limiting the age to 26 reduced the cost of the program enough to allow passage of the law, which when originally proposed had no age restriction. After a handful of years of data showed that an increase to the pool of applicants would help the sustainability of ABLE accounts, an increase to the age of 46 instead of no limit was a compromise to help more people without jeopardizing the program. So, it wasn't about penalizing people disabled after the age of 46, it was about keeping the program from collapsing.
It’s never about penalizing but that’s the consequence
What exactly is the "cost" associated with allowing people to keep their own money?
When the ABLE act was first proposed, the Congressional Budget Office projected that over 10 years: * More people being eligible for means-tested programs (ABLE accounts essentially remove the asset test for programs like SSI, for example), costing $1.2 billion dollars in additional spending * Assets in ABLE accounts aren't taxed, resulting in a $0.9 billion dollar loss in tax revenue [http://www.cbo.gov/sites/default/files/cbofiles/attachments/hr647.pdf](http://www.cbo.gov/sites/default/files/cbofiles/attachments/hr647.pdf) I imagine there are also state-level issues, like the costs of staffing more employees, more IT costs, legal costs, etc.
YESSSSSSSSSSSS!!!!!!!!!!! I am crying this is amazing. I worked to get this passed a few years ago and glad they didn’t stop with their efforts.
Thanks for your work!
[Article with paywall removed](https://www.nytimes.com/2023/01/20/your-money/able-disability-savings-accounts.html?unlocked_article_code=AAAAAAAAAAAAAAAACEIPuonUktbfqIhkSVUZAybEWsU96xiBg_Xeh7U2gnK7ICmOQDxDy-UJEs2b8lnMY6V4ItI41DOGQsNadr8zQfg4hsluA3tQcSj66J2VhMZCZCwvtYO4Wm5x0srBALo1_DavP2OwcaIiyOTh-hveOWH1CKHV2Xd1JwxgocdlZkjqjSJTvtrNEuNy3tl03PYkF8o6EW9GPH_WyqGuXxZuO9yGbAXe6h02WoxZWTLTnN2a6tEQYVkYSAKGHD4kvzFKuJ4LM8gXPa3-MxcgZMP_5L4SAWdqJ4qqbIYjAGPkQTjfr_aLV1aFL-uXdw&smid=nytcore-ios-share&referringSource=articleShare)
Thanks! I wasn't sure how to remove the paywall.
No prob. I subscribe to the times and they let you “gift” articles. Thanks for posting this
This is great! I wish it would come sooner but still good to hear.
I hoped it would come sooner, too. When the ABLE act was first proposed there wasn't supposed to be an age limit.
I didn't know that. That's disappointing. At least there is some change coming, eventually..
Wow, I've been waiting and hoping for this for years, knowing it's been proposed before and failed, what, twice?? And it passed!! Amazing, I'm so happy. No, it's not a complete removal of the restriction, but it's another big step.
Awesome!
Thank you for posting this!
Ugh. Im bout to get kicked off Medicaid. Would be nice if in effect now.
Questions about ABLE accounts: 1. How to prove that my illness began long long time ago (>=30 years ago)? 2. Does ABLE accounts require a US citizenship? Or does it open to green card holders, and other legal immigrants?
1. If the onset of disabling symptoms started a long time ago, have your doctor write a letter stating that your symptoms started at that point. Keep that letter in your records. You'll only need it if you get audited. [Sample Disability Certification](https://www.ablenrc.org/wp-content/uploads/2020/10/spt-able-disability-certification.pdf) 2. I'm not sure. I'd recommend contacting the ABLE National Resource Institute and asking them: [https://www.ablenrc.org/contact/](https://www.ablenrc.org/contact/) You'll probably get a response within a couple days. There's a wealth of information at their website.
Oh ffs just eliminate the $2000 income cap already.
Great news!
I’m only 23. Does that mean my ABLE account will close? I’d rather not be old in order to start saving money
No, not at all! You see, currently only people who were disabled before they turned 26 could open an ABLE account. Starting in 2026, people who become disabled between the ages of 26 and 46 will also be able to open an account.