ABLE accounts: An underutilized tool that can have a big impact

ABLE accounts are becoming a more important planning tool as eligibility expands and awareness remains low. They can help individuals with qualifying disabilities save tax-advantaged dollars for disability-related expenses without jeopardizing key benefits, which makes them especially valuable in long-term financial plans.

For advisors, the opportunity is twofold: meet an underserved client need and deepen relationships with families navigating disability-related costs. Recent rule changes have widened access, including a higher age threshold for eligibility and continued flexibility around contributions and rollovers from 529 plans.

The main risk is missing the chance to educate clients who may qualify but do not realize it. With many eligible individuals still not using these accounts, proactive conversations can uncover meaningful planning opportunities and improve financial outcomes.