February 2026:
The MLO Minute: “Changes to PA ABLE Accounts in 2026”
By Jennifer Simons, Esq., Attorney in the Estates and Trusts Department —
ABLE account owners in Pennsylvania need to be aware of important changes to PA ABLE accounts that became effective on January 1, 2026. ABLE (Achieving a Better Life Experience) accounts allow a person with a disability to contribute money to an ABLE account without impacting certain resource based public benefits such as Supplemental Security Income (SSI) and Medical Assistance.
Total contributions to a PA ABLE account are limited to a certain amount each year, which typically increases annually. In 2025 the total contribution to a PA ABLE account was capped at $19,000. Effective on January 1, 2026, the limit was increased to $20,000.
Another more significant change that also became effective on January 1, 2026, will allow more disabled individuals to open a PA ABLE account. Prior to 2026, only those individuals whose qualifying disability began prior to the age of 26 were eligible to open a PA ABLE account. This age limit prevented a lot of disabled persons whose disability began after age 26 from being able to open an ABLE account in PA. However, effective in 2026, the age limit to open an ABLE account in PA was raised from 26 to 46. Raising the age limit from 26 to 46 will allow many more individuals with disabilities to take advantage of the use of an ABLE account.
ABLE accounts allow a person with disabilities to save funds without the funds being counted as a resource for eligibility of SSI and Medical Assistance. Funds in an ABLE account grow tax-free as long as the funds are used for qualified disability expenses. ABLE accounts also give individuals more independence and allow them to manage their own money. ABLE accounts can also be useful if a person receives a modest lump sum of cash via an inheritance or proceeds from a litigation, by allowing those funds (up to $20,000) to be transferred to an ABLE account without impacting eligibility for SSI or Medicaid. With the recent changes to PA ABLE accounts that took effect in 2026, more people with disabilities can make use of ABLE accounts and will be able to contribute up to $20,000 in 2026.
