The One Big Beautiful Bill Act (OBBBA), passed in July 2025, brought sweeping changes to Achieving a Better Life Experience (ABLE) accounts. Most of These updates will roll out through 2027, expanding access for people with special needs and helping them save more money.
ABLE accounts, created in 2014, let people with disabilities save money without losing government benefits like SSI or MaineCare. They may use the account funds to cover qualified disability expenses (QDEs) like education, housing, and transportation.
Maine's ABLE ME program launched in 2021 through Bangor Savings Bank and the State Treasurer's office. ABLE ME follows federal rules but is for Maine residents only.
Similar to 529 plans, in some states, ABLE accounts let participants choose investment portfolios. Though ABLE ME favors principal protection and easy access, Maine residents may open accounts in other states for investment options or other features.
ABLE Account Quick Facts
- ABLE account interest is tax-free. Money used for QDEs doesn't count as federal income. ABLE ME works as a checking account without earning interest.
- State tax laws and Medicaid recovery rules vary; unlike other states, Maine law generally protects ABLE ME accounts from MaineCare recovery after the beneficiary dies, except where federal law would strictly require it.
- Depending on state laws, account limits might differ; the federal lifetime contribution limit is $500,000 (adjusted for inflation) across all ABLE accounts a beneficiary owns over their lifetime — not an annual cap. ABLE ME requires a $25 minimum to open. Note: ABLE balances over $100,000 suspend (but don't end) SSI eligibility until the balance drops below that amount.
- ABLE ME has no annual fees, debit card costs, or rollover charges.
For advice that suits your situation, talk to a benefits or elder law attorney.
ABLE Account Changes Effective in 2025 Through 2027
When the OBBBA became law on July 4, 2025, the following changes took effect immediately:
- ABLE-to-Work became permanent: Employed people with disabilities not in a defined-contribution retirement plan may add earned income to their ABLE accounts above the $19,000 annual limit — up to the federal poverty level or their yearly earnings, whichever is less.
- 529 college savings plans (permanent): Tax-free rollovers count toward annual limits, which can prevent over-contributions. ABLE account assets are generally excluded from the FAFSA (Free Application for Federal Student Aid) calculation, helpful for students with disabilities.
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Saver's Credit eligibility: ABLE account contributions now qualify for this tax credit to help lower-income workers save for the future.
- Starting in 2027, the maximum contribution eligible for the credit will increase to $2,100. The maximum amount a tax payer is allowed to claim as this credit will rise to $1,050 (that is, ABLE savers can receive a credit up to this amount yearly for their account contributions).
Expanded ABLE Account Access This Year (Effective January 2026)
People with disabilities that occurred before age 46 (up from age 26) now qualify to open an ABLE account. Applicants must have a severe disability that meets the Social Security Administration’s rules, defined as resulting in marked functional limits that have lasted or can be expected to last for at least 12 months.
To qualify, people with disabilities don't have to be receiving or to have previously received benefits. Employment status and income don't affect eligibility.
Next step: If you advise or care for an eligible person, review ABLE as part of a funding or benefits strategy and coordinate it with trust planning.
ABLE accounts help people with disabilities pay for healthcare, education, housing, and assistive devices. When they're paired with a special needs trust for larger sums, they work together to protect benefits and support long-term care.
If you or a loved one has special needs and want to see how an ABLE account would fit into your planning, contact us online or call (207) 377-6966 for a free consultation today.
