Planning for Disability Expenses? New Rules Boost ABLE Accounts！

Achieving a Better Life Experience (ABLE) accounts offer a tax-advantaged way to fund qualified disability expenses for a beneficiary who became blind or disabled before age 26 (increasing to age 46 in 2026). There’s no tax deduction for contributions, but funds can grow tax-deferred and distributions for qualified expenses are tax-free. The One Big Beautiful Bill Act makes permanent the ability to roll over 529 plan funds to an ABLE account without penalty as long as the ABLE account is owned by the beneficiary of the 529 plan or a member of the beneficiary’s family. Such rolled-over amounts count toward the ABLE account annual rollover and contribution limit, which is $19,000 for 2025.