Illinois Expands ABLE Accounts, A Big Win for People with Disabilities and Their Families

Saving for the future can be hard enough but for people with disabilities, the federal rules around benefits have traditionally made it even harder. A recent announcement by Illinois State Treasurer Michael Frerichs brings good news to thousands of Illinois residents and their families: the eligibility for ABLE accounts has now been expanded, giving many more people the opportunity to save for disability-related expenses without risking their benefits.

What Is an ABLE Account?

ABLE stands for Achieving a Better Life Experience. These special savings accounts were created under federal law to help individuals with disabilities and their families save and invest money for qualified disability-related expenses like housing, transportation, education, assistive technology, and medical costs without jeopardizing eligibility for vital federal programs like Supplemental Security Income (SSI) or Medicaid.

Under the old rules, a person could only open an ABLE account if their disability began before age 26. That meant many adults who developed a disability later in life, such as from an accident, neurological condition, or military service were left out of a powerful financial tool.

What Changed and Why It Matters

Thanks to a change in federal law that took effect this year, the eligibility age for ABLE accounts has increased from before age 26 to before age 46. That expansion makes an estimated 250,000 more Illinois residents eligible to open ABLE accounts. On a national scale, about 6 million more Americans will now qualify.

Illinois Treasurer Frerichs called the change “a game changer,” noting that the original age restriction unfairly excluded many people based on a technical cutoff.

This update is significant because ABLE accounts allow qualified individuals to save money tax-free for disability-related expenses and they don’t count against the strict federal asset limits that apply to SSI and Medicaid. Typically, people receiving these benefits could only have $2,000 in personal assets before risking loss of benefits. But funds in an ABLE account don’t count toward that limit, and balances up to $100,000 generally don’t affect SSI eligibility.

Who Benefits Most?

The expansion helps a wide range of individuals, including:

• Adults who developed disabilities later in life
• People injured in accidents after age 26
• Veterans with qualifying disabilities
• Families who want to save for future disability-related needs

Before this change, many people who became disabled in their 30s or later were excluded from participating in the program, simply because of the age rule. Now they can access a savings tool that offers both financial flexibility and peace of mind.

How ABLE Accounts Work in Practice

ABLE accounts function similarly to college 529 savings plans:

• Tax-free growth: Funds grow tax-free when used for qualified expenses.
• Flexible use: Money can be used for housing, transportation, education, health care, assistive tech, and more.
• Family contributions: Friends and family members can contribute to the account.
• SSI/Medicaid protection: Up to $100,000 in an ABLE account won’t affect SSI benefits.

Across Illinois, there are already thousands of ABLE account owners who have collectively saved millions of dollars, giving families more control over their financial future.

Looking Ahead

The expansion of ABLE eligibility reflects a broader recognition that financial tools should be inclusive and empower people with disabilities to build independence and plan for long-term needs. It also highlights how thoughtful policy changes can have real impacts on everyday lives.

If you or someone you love might qualify for an ABLE account under the new rules, it’s worth exploring how these savings tools work and what they could mean for your family’s financial planning.

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If you have questions about disability planning, estate planning, or how financial tools like ABLE accounts might fit into your legal planning in Illinois, we’re here to help.