What's Happening?
ABLE accounts, tax-advantaged savings accounts for Americans with disabilities, have become more accessible due to expanded eligibility criteria. Originally established by Congress in 2014, these accounts allow individuals with disabilities to save for disability-related
expenses without affecting their eligibility for means-tested benefits. The recent expansion, effective January 1, 2026, raises the age threshold for eligibility from 26 to 46, potentially increasing the number of eligible individuals from 8 million to 14 million. Despite their benefits, ABLE accounts remain underutilized, with less than a quarter-million accounts opened by 2025. Employers are in a unique position to raise awareness and educate their workforce about these accounts as part of a broader financial wellness strategy.
Why It's Important?
The expansion of ABLE accounts is significant as it broadens financial planning options for individuals with disabilities, allowing them to save for essential expenses like housing, healthcare, and education. For employers, promoting these accounts can enhance their financial wellness programs and serve as a valuable recruitment and retention tool. Employees with disabilities are often loyal and have lower turnover rates, making them a desirable demographic for employers. By facilitating contributions to ABLE accounts, either through payroll deductions or direct contributions, employers can support their employees' financial security and potentially improve workplace satisfaction and loyalty.
What's Next?
Employers are encouraged to integrate information about ABLE accounts into their financial wellness programs. This includes educating employees about the benefits and mechanics of ABLE accounts and potentially offering payroll deduction options for contributions. As awareness grows, more individuals may take advantage of these accounts, leading to increased financial stability for people with disabilities. Employers who actively promote and support ABLE accounts may see improved recruitment and retention outcomes, particularly among employees with disabilities and those caring for family members with disabilities.
