Wealth Done R.I.T.E.™: Using ABLE Accounts to Support Disabled Family Members Through Financial and Estate Planning

As families continue seeking ways to build financial security for loved ones with disabilities, the latest Q2 2025 National ABLE data shows strong and steady adoption of ABLE programs nationwide. The data not only highlights increasing engagement but also underscores the importance of integrating ABLE strategies into financial and estate planning in a clear, compliant, and holistic manner.

Key Data Highlights (as of June 30, 2025)

• ABLE accounts hold approximately $2.68 billion in assets across 214,000 accounts.
• This represents notable growth from Q1 2025 (204,133 accounts; $2.47 billion) and from Q2 2024 (180,059 accounts; $2.03 billion).
• Accounts increased by roughly 10,000 quarter over quarter and by nearly 34,000 year over year.
• Total assets grew by about $210 million from Q1 and approximately $650 million compared with Q2 2024.

These figures demonstrate expanding trust and utilization of ABLE programs as a tool for preserving benefits while promoting financial independence.

What’s Driving the Momentum?

1. Increasing Awareness and Outreach

National organizations—including the National Association of State Treasurers and ABLE Today—continue expanding educational efforts. These programs help families understand that properly used ABLE accounts do not disrupt eligibility for federal benefits such as SSI and Medicaid, provided distributions are for qualified disability expenses (QDEs).

2. Legislative and Regulatory Enhancements

Several key policy improvements have strengthened the value proposition of ABLE accounts:

• The annual contribution limit increased to $19,000 in 2025.
• Working beneficiaries may contribute additional earnings up to $15,650, depending on compensation and local poverty guidelines.
• Long-term improvements—such as ABLE-to-Work provisions, 529-to-ABLE rollovers, and the Saver’s Credit for eligible contributors—create even more opportunities for long-term saving.

3. Expanded Eligibility Beginning January 1, 2026

One of the most transformative changes arrives in 2026: Individuals whose disabilities began before age 46 (up from age 26) will become eligible. This expansion may open the door for an estimated 6 million more Americans, including over 1 million veterans, to participate.

Why This Matters for Families and Planners

The continued rise in participation is more than statistical growth—it reflects increasing confidence in ABLE programs and their role in building economic stability for disabled individuals.

• Growing Engagement: Rising account numbers and asset levels signal that more families recognize ABLE accounts as a valuable planning resource.
• Policy Timing: With major eligibility expansion taking effect in 2026, families and advisors should begin preparing now to help future eligible individuals understand and access the benefits.
• A Holistic Approach: ABLE accounts allow families to save for education, healthcare, mobility, housing, and other qualifying disability expenses in a tax-advantaged manner while preserving means-tested benefits.

Wealth Done R.I.T.E.™ brings a structured framework—Risk, Investments, Tax, Estate—to financial and estate planning. Below is how each component applies when incorporating ABLE accounts.

R — Risk Management

• Help families understand how ABLE accounts coordinate with SSI, Medicaid, and other public benefits.
• Review potential exposure if annual contribution limits are exceeded or if distributions are used for non-qualified expenses.

I — Investments

• ABLE programs offer investment choices, often including target-risk or target-date portfolios.
• Advisors can help families select options consistent with time horizon, anticipated expenses, and tolerance for volatility.
• Confirm investment discussions remain educational and aligned with SEC guidance—no performance predictions, no guarantees.

T — Tax Strategy

• Contributions are after-tax, but earnings grow tax-free if used for qualified disability expenses.
• The Saver’s Credit may offer additional federal income-tax benefits to eligible contributors.
• Families should coordinate ABLE contributions with other tax-advantaged strategies, including 529 plan rollovers and special needs trust planning.

E — Estate Planning

• ABLE accounts complement but do not replace special needs trusts (SNTs).
• Confirm durable powers of attorney, guardianship arrangements, or supported decision-making frameworks are in place for account oversight when needed.
• Families may structure plans so that routine or predictable expenses are funded through an ABLE account, while supplemental needs or long-term inheritances flow through an SNT.
• Estate documents—wills, trusts, and beneficiary designations—should reflect ABLE funding intent and authorized individuals who may manage or contribute to the account.
• Help clients understand Medicaid payback rules that may apply to ABLE accounts at the beneficiary’s passing.

ABLE accounts are proving to be a meaningful, practical vehicle for promoting financial resilience and independence for individuals with disabilities.

Your family deserves clarity and confidence.
If you’re considering an ABLE account or preparing for the expanded 2026 eligibility, we can help you understand your options and create a plan aligned with your goals Schedule a call here.

For Informational Purposes only and not for legal or tax advice.

About the Author – Marie Feindt, JD 

Marie Feindt is the Planning Specialist – Estate Attorney at Members’ Wealth, a boutique wealth management firm that offers a comprehensive and holistic approach to serving individuals, families, business owners, and institutions. The firm’s goal is to preserve and grow its clients’ wealth to endure over time, while thoughtfully evolving its strategy to suit an ever-changing world. With over 20 years of estate planning experience, Marie and the Members’ Wealth team thrive on bringing clarity and confidence to clients’ unique situations. She believes everyone, young adults and older, need the essential documents to conserve and preserve and transfer assets accumulated during lifetime to the next generation.

Marie received her JD from Widener University School of Law, her bachelor’s degree from Penn State University, University Park and is currently enrolled in the Villanova University Charles Widger School of Law Graduate Tax Program.

Marie is an Adjunct Faculty at the Villanova University College of Professional Studies Paralegal Professional Certificate Program where she teaches Estates & Trusts and Civil Procedure & Litigation and Torts & Personal Injury Law.

Marie volunteers for a monthly legal clinic at The Salvation Army in Chester, PA facilitated by the Christian Legal Clinic of Philadelphia. She has served on the Women’s Commission of Delaware County and as a Board Member for the Delaware County Literacy Council.

Marie enjoys biking, reading, yoga and walking in her free time with her husband and three children.

To get in touch with the Members’ Wealth team today, I invite you to email info@memberswealthllc.com or call (267) 367-5453. 

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