A Guide to ABLE Accounts for Veterans & the Military Community

Saving for what’s next looks different for everyone. For people who served in the military, it often comes with extra questions: What will healthcare cost down the road? How do I build something lasting while managing everyday expenses? And am I making the most of every tax-advantaged savings option I can?

Most people have heard of the 401(k) and the IRA, but fewer know about the ABLE account. And, since January 1, 2026, many more people in the military community now qualify for one. An estimated 1 million more veterans became eligible this year, and many of them don’t know it yet.

What Changed on January 1, 2026

On January 1, 2026, the age limit for ABLE eligibility rose from 26 to 46. Anyone whose qualifying medical condition began before their 46th birthday may now be eligible, up from before age 26. The change is already showing up in new account openings.

From January 1 through September 30, 2026, about 18% of the funded ABLE accounts opened through Vestwell-administered programs belonged to people in the new age eligibility range, meaning their qualifying medical condition began between ages 26 and 45. About 64% of the funded veteran accounts opened this year belong to veterans whose qualifying medical condition began between ages 26 and 45.¹ Before 2026, these individuals could not have opened an account.

Does ABLE Apply to You?

Many conditions can qualify, and they don’t have to be connected to your service. These may include, but are not limited to, PTSD, depression, anxiety, chronic pain, hearing loss, tinnitus, vision loss, traumatic brain injury, and neurological, spinal, or joint conditions.

Because ABLE accounts previously required that a qualifying medical condition began before age 26, many people who served were left out until this year. Now the cutoff is 46. If your qualifying medical condition began before your 46th birthday, you may be eligible, whether it started during your service, shortly after, or years later.

ABLE Eligibility

• You have a physical or mental health condition, or blindness, that causes marked and severe limitations in daily life and has lasted, or is expected to last, at least a year
• The condition began before age 46
• You receive Social Security disability benefits because of it, or your doctor can confirm it with a signed diagnosis. Learn more about ABLE eligibility from the Social Security Administration.

Many people who qualify don’t think of themselves as having a “disability,” and that’s one reason this account flies under the radar. If you’re unsure, it’s worth taking our one-minute eligibility quiz to find out.

A few additional notes on eligibility:

• A VA rating is not the test. ABLE eligibility follows the Social Security definition, not the VA’s rating system. A specific VA rating isn’t required, and having one doesn’t automatically mean you qualify.
• A doctor's confirmation may be used to document eligibility but is not required to open an ABLE account.
• Timing is based on when the condition began, not when it was diagnosed.
• Your job and income don’t affect eligibility. Many people who qualify are working, and there are no income limits to open an account.

How Do ABLE Accounts Work?

“ABLE” stands for Achieving a Better Life Experience. An ABLE account is a tax-advantaged account for saving, spending, and investing. It’s similar to a Roth Individual Retirement Account (IRA) or Health Savings Account (HSA), but designed for people with a qualifying medical condition.

The account is owned by the person with the medical condition who qualifies. They choose how to invest it, when to use it, and how long to let it grow. Here’s how they work:

1. Save and invest. ABLE accounts offer a range of investment options, from conservative to aggressive, so you can match your account to your goals and comfort with risk.

2. Grow funds tax-free. Contributions aren’t tax-deductible, though some states offer a deduction or credit. Earnings in your account grow tax-free, and you can withdraw the funds tax-free when used for qualified expenses.

3. Use it for qualified expenses. The IRS defines these broadly as costs that support your health, independence, and quality of life. Common examples include:

• Housing
• Transportation
• Education and training
• Health care
• Assistive technology
• Employment support
• Everyday living costs

How Much Can You Put In?

For 2026, the annual contribution limit is $20,000. If you work and don’t participate in an employer-sponsored retirement plan, you may be able to contribute more. The extra amount is up to an additional $15,650 a year (or $19,950 for individuals who live in Alaska, and $18,360 for those in Hawaii).

How Family Members and Caregivers Can Get Involved

Family members, friends, and caregivers play a big role in many people’s financial lives. A spouse, parent, adult child, or other loved one can help someone who served open and manage an account. If you know someone who might qualify, sharing this guide is a great way to start the conversation.

How ABLE Accounts Affect Other Veteran Benefit Programs

A common question is whether opening an ABLE account could affect benefits you already receive. In general, it doesn’t.

Money in an ABLE account does not count against veteran benefits, including the income-limited VA Pension. It also does not count against Social Security Disability Insurance (SSDI). Because ABLE accounts are designed to sit alongside other programs, you can save and invest without having to choose between the two.

Is an ABLE Account Right for You?

If you’ve ever wondered whether you’re getting the most out of every savings option available to you, exploring an ABLE account is worth your time. The first step is simple: find out whether you may be eligible. Check your eligibility for an ABLE account in under one minute here.