Illinois ABLE Accounts Expand Eligibility, Opening Door for 250,000 More Residents

More than a quarter of a million Illinois residents can now benefit from an ABLE savings account after federal lawmakers expanded eligibility from age 26 to age 46.

Age Limit Change Expands Financial Opportunity for Illinoisans with Disabilities

A major change to federal disability savings law is expanding access to specialized financial accounts for thousands of Illinois residents, following an announcement from Illinois Treasurer Michael Frerichs.

An estimated 250,000 Illinoisans with disabilities are now eligible to open ABLE accounts following a significant update to the law.

The change is due to the Achieving a Better Life Experience Act, which created tax-adbantaged savings accounts for individuals with disabilities. Previously, individuals could only qualify if their disability occurred before age 26.

Beginning this year, the eligibility age has expanded to before age 46, dramatically widening access to the program. State officials estimate the change will allow millions more Americans to begin saving money without jeopardizing critical federal assistance.

Why the Expansion Matters for Financial Independence

Before ABLE accounts were created, individuals receiving disability benefits faced strict financial limits. Federal rules restricted many beneficiaries to no more than $2,000 in assets without risking eligibility for programs such as Supplemental Security Income or Medicaid.

Funds placed in an ABLE account do not count toward that limit, allowing individuals to build savings for essential needs such as housing, transportation, education, and assistive technology.

Supporters say the age expansion corrects a gap that left many individuals ineligible, including people diagnosed with neurological conditions later in life, those injured in accidents, or veterans who developed disabilities during military service after turning 26.

Illinois Program Already Showing Growth

Illinois officials say the state's ABLE program is already gaining traction. Approximately 8500 Illinois residents currently hold ABLE accounts, collectively saving more than $121 million.

The accounts allow tax-free investment growth when funds are used for qualified disability-related expenses. Family members and friends can also contribute, and balances can reach $100,000 without affecting SSI benefits.

Treasurer Frerichs announced the expansion during a news conference in Chicago alongside advocates and ABLE account holders. More information about the Illinois program and enrollment details are available through the state's ABLE program website.