ABLE Accounts- A Bright Spot in the One Big Beautiful Bill Act

Last week’s blog covered some worrisome news about Medicaid changes under the One Big Beautiful Bill Act (OBBBA).  A bright spot in the One Big Beautiful Bill Act – ABLE Accounts.  If you or a loved one has an ABLE account, we are happy to share some positive updates.

What Is an ABLE Account?

ABLE (Achieving a Better Life Experience) accounts help individuals with disabilities save money without losing eligibility for benefits such as Medicaid. These accounts make it possible to set aside funds for care, housing, education, and more, without risking crucial support.

Good News from OBBBA for ABLE Account Holders

• ABLE-to-Work Made Permanent
  If you’re working and have an ABLE account, you can continue contributing extra funds beyond the annual limit- permanently.
• 529 Plan Rollovers Allowed
  Families can now permanently roll over 529 education savings plans into ABLE accounts without taxes or penalties.
• Saver’s Credit Extended to ABLE Contributions
  Contributions to ABLE accounts will still qualify for the Saver’s Credit, with an increased annual limit of $2,100 and a potential maximum credit of $1,050 starting in 2027.
• Future Contribution Limits May Increase
  The law allows for future adjustments to contribution limits based on updated calculations so that savers can benefit even more down the line.

Make planning a priority

These positive changes give families and individuals with disabilities new tools to save and prepare for the future. However, there are still concerns that increase the need for organized, proactive planning, especially for spouses, families supporting aging parents, or disabled children.

Next week, we’ll finish our three-part series, where we’ll explain what the OBBBA means for nursing home care and why it’s more crucial than ever to advocate for your loved ones. Medicaid planning is complex, and legislative changes make it even more important to seek guidance from an experienced Certified Elder Law Attorney (CELA). Call Hurley Elder Care Law today at 404-843-0121 to begin your planning process and avoid costly mistakes.