MAY 18, 2026 – For many veterans living with disabilities, financial security can be a familiar challenge. A little-known financial tool – called an ABLE account – can offer help.
Achieving a Better Life Experience accounts (“ABLE” accounts) have existed since 2016, and a landmark eligibility expansion that took effect January 1, 2026 is making it easier for veterans to qualify. For the 5.5 million veterans living with service-connected disabilities, that’s news worth paying attention to.
What Is an ABLE Account?
An ABLE account is a tax-advantaged savings tool designed specifically for people with disabilities. In many ways, they are similar to a retirement account or an HSA for medical expenses. Contributions grow tax-free, and withdrawals used for qualified expenses are also tax-free.
Unlike traditional retirement accounts, which can’t be accessed until a certain age, or HSAs, which have limited spending permissions, ABLE accounts offer broad flexibility. Funds can be used for a wide range of everyday expenses, including housing, groceries, transportation, health care, education, employment training, assistive technology, and more. ABLE accounts have the tax power of a Roth IRA, with the spending access of a checking account. You can save for the next decade and pay tomorrow’s bills.
A key benefit is that savings in an ABLE account does not count toward asset limits for means-tested federal programs like VA Pension benefits or Medicaid. For veterans navigating strict eligibility requirements for these programs, this allows more savings without putting essential benefits at risk.
For veterans specifically, it’s worth taking a moment to understand what “disability” means in this context — it’s broader than many people assume, and also broader than a VA disability rating. Qualifying conditions include physical disabilities, chronic illness, mental health conditions, and cognitive impairments. Importantly, service-related conditions like PTSD, traumatic brain injury (TBI), and anxiety disorders can qualify. Many veterans who don’t think of themselves as having a “disability” per se may in fact be eligible for an ABLE account.
How Did ABLE Eligibility Requirements Change?
When Congress passed the ABLE Act in 2014, eligibility was limited to individuals whose disability began before age 26. That excluded many veterans, particularly those whose conditions developed later in life.
That’s all changed thanks to expansions in federal law. As of January 1, 2026, individuals can now open an ABLE account as long as their disability began before age 46, making an estimated 6 million more Americans eligible. Veterans represent one of the largest newly eligible groups.
Why It Matters for Veterans
The financial benefits built into ABLE accounts are particularly meaningful for veterans navigating a complex system of benefits, medical costs, and financial uncertainties:
- Tax benefits can super-power your savings. Unlike traditional savings or investment accounts, ABLE money grows and can be spent tax-free. Many states also offer state tax deductions or credits for ABLE account contributions.
- VA benefits stay intact. ABLE funds don’t count toward resource limits for VA Pension or other means-tested federal programs, which means that veterans can save for everyday expenses without worrying about whether they will lose other benefits they’ve earned.
- Generous contribution limits. In 2026, individuals can contribute up to $20,000 annually. Contributions can come from family, friends, or employers, giving veterans more tax-free savings for short-term spending or long-term needs (like retirement).
- Employment bonus. Working veterans who are not enrolled in an employer-sponsored retirement plan may be eligible to contribute an additional $15,650 per year, on top of the $20,000 annual limit, making it easier to build long-term financial independence.
Who Qualifies for an ABLE Account?
Eligibility is based on a two-part test: the disability must have occurred before age 46 and must result in significant functional limitations expected to last at least 12 months.
Individuals who receive SSDI or SSI qualify automatically.
It is important to note that a VA disability rating does not automatically qualify for an ABLE account. The Department of Veterans Affairs and the Social Security Administration use different criteria. However, many veterans can qualify and should explore their options.
How to Get Started
ABLE accounts are administered at the state level, but most programs are open to qualified individuals nationwide. This allows individuals to compare features, fees, and investment options across states. Resources like Vestwell’s ABLE Hub can help individuals understand eligibility, compare state programs, and take the first step toward opening an account. Explore their resources at www.vestwell.com/able.
The Bottom Line
For many veterans, ABLE accounts offer a real financial opportunity to save and plan for the future – with powerful, wealth-building tax advantages, all without putting essential benefits at risk.
As eligibility expands in 2026, an estimated one million more veterans now have access to a tool that was previously out of reach. Understanding how ABLE accounts work and whether they fit into a broader financial plan is an important first step.
Before opening an account, veterans may want to consult a benefits counselor or financial planner familiar with VA programs to ensure an ABLE account complements their existing benefits.
By Juliana Crist, Head of ABLE Programs for Vestwell
Juliana Crist serves as SVP of ABLE Programs at Vestwell. She oversees the launch and administration of all ABLE Programs on Vestwell’s platform. Juliana has served in the ABLE industry for over a decade and is passionate about helping people with disabilities work towards a better financial future.