ABLEnow, a national, tax-advantaged savings program designed specifically for people with disabilities.
What is ABLEnow?
ABLEnow accounts allow people to save and invest money without jeopardizing their eligibility for certain means-tested benefits like Medicaid and Supplemental Security Income (SSI).
Key Features:
- Tax-Advantaged Savings: Earnings grow free from federal taxes, and withdrawals for qualified disability expenses are tax-free.
- Broad Eligibility: People who developed a qualifying disability before age 26 may be eligible.
- Flexible Use: Funds can be used for various expenses, including housing, education, transportation, and healthcare.
- Easy Access: Manage your account online and use the ABLEnow debit card for qualified expenses.
To determine eligibility and learn more about how ABLEnow can support financial independence, visit ABLEnow Introduction | Blog | ABLEnow to watch an introductory video.
Here are the New York–specific changes comparing the pre‑2026 ABLE (NY ABLE) rules with the new ABLE Now updates, effective January 1, 2026:
🏛️ Eligibility Age
- Before: Disability onset had to occur before age 26to qualify. [ilny.us], [mynyable.org]
- After: Now extended to individuals whose disability began before age 46, expanding eligibility to a much larger group. [mynyable.org], [ablenrc.org]
💸 Annual and Total Contribution Limits
- Before 2026:
- Annual contributions capped at $19,000from all sources. [mynyable.org], [specialnee…nswers.com]
- Employed individuals (without an employer retirement plan) could add up to the Federal Poverty Line (~$15,060 in 2024) via the ABLE-to-Work [mynyable.org], [ablenrc.org]
- Lifetime cap was $520,000. [mynyable.org]
- Effective Jan 1, 2026:
- Federal cap increases to $20,000 [specialnee…nswers.com], [ablenrc.org]
- The ABLE-to-Work incentive persists—up to ~$15,650 in additional funds for eligible working individuals. [ablenrc.org], [mynyable.org]
- Lifetime cap remains $520,000. [mynyable.org], [ablenrc.org]
🔁 ABLE-to-Work Provision
- Before: Allowed on a limited, possibly temporary basis for employed individuals not in employer retirement plans. [mynyable.org], [ablenrc.org]
- After: Made permanently by federal legislation, so NY ABLE participants can continue to make the additional annual work-based contributions. [ablenow.com], [ablenrc.org]
🔄 529-to-ABLE Rollovers
- Before: Allowed in NY, but state limitations and not permanent.
- After: Now permanently allowed. NY provides an Incoming Rollover Form for 529-to-ABLE transfers, subject to annual contribution caps. [cdn.unite529.com], [ablenrc.org]
✅ Saver’s Credit Eligibility
- Before: NY ABLE contributions did not qualify for the federal Saver’s Credit, though the provision was introduced federally.
- After: Contributions are eligible for the Saver’s Credit under federal law—and this applies to NY ABLE accounts. [ablenow.com], [ablenrc.org]