Insight Category: Family

The 2026 ABLE Expansion: Strategies for Faith-Forward Stewardship

For families navigating the complexities of disability-related expenses, the ABLE (Achieving a Better Life Experience) account has long been a vital tool. However, as of January 1, 2026, the program has undergone its most significant evolution since its inception, offering unprecedented flexibility for those seeking to protect assets while maintaining critical federal benefits.

The 2026 Expansion: Broadening the Reach

The most transformative change in 2026 is the expanded eligibility age. Previously restricted to those with a disability onset before age 26, the program is now open to individuals whose disability occurred before age 46.

This shift opens the door for millions more Americans—including many veterans and individuals with later-onset conditions—to utilize these tax-advantaged structures.

Architectural Advantages & Asset Protection

At KERUX, we focus on the technical architecture of your plan to optimize outcomes. For 2026, the ABLE framework offers three primary structural benefits:

  • Higher Contribution Limits: The standard annual contribution limit has increased to $20,000.
  • Means-Tested Protection: Funds are generally not counted as assets for federal benefits. For SSI, the first $100,000 is excluded; even if the balance exceeds this, Medicaid eligibility typically remains unaffected.
  • "ABLE to Work" Provision: Employed account owners not participating in employer-sponsored retirement plans can contribute an additional amount from their earnings—up to $15,650 for 2026.

Strategic Funding: The 529 Rollover Strategy

A common challenge for high-net-worth families is “trapped” capital in 529 College Savings Plans that may no longer be needed for traditional education. Starting in 2026, legislation has made the 529-to-ABLE rollover a permanent feature of the tax code.

How it functions within your strategy:

Tax Free Transfers

Roll over funds from a 529 plan without federal taxes or penalties.

Annual Cap Synergy

Rollovers count toward the $20,000 annual limit. For instance, a $15,000 rollover allows for an additional $5,000 in cash contributions for the year.

Beneficiary Flexibility

The ABLE owner must be the 529 beneficiary or a qualified family member (such as a sibling).

Qualified Disability Expenses (QDEs): Stewardship in Action

The “Harvest” of an ABLE account is found in its tax-free distributions. Funds can be used broadly for expenses that improve the beneficiary’s health, independence, or quality of life, including:

Housing, Food, and Transportation

Healthcare and Prevention Services

Legal and Financial Management Fees

Education and Job Training

Defining Eligibility

To qualify in 2026, an individual must have a disability onset before age 46 and either receive SSI/SSDI benefits or have a physician’s certification of a “medically determinable impairment” lasting at least 12 months. Common qualifying categories include developmental, neurological, and psychiatric disorders, as well as chronic systemic conditions.

Is Your Legacy Architecture Ready?

The expansion of the ABLE program is more than a change in policy—it is a strategic opportunity to provide long-term order for your family. If you have unused 529 funds or need to coordinate disability-related benefits with your broader investment portfolio, our team is here to help you navigate the complexity.

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Fiduciary Duty & Professional Advice: Advisory services are offered through Kerux, LLC, a registered investment adviser. We are held to a fiduciary standard, legally obligating us to act in our clients’ best interests at all times. The information provided is for educational purposes only and should not be construed as investment, tax, or legal advice.

Educational & Technical Information: This post reflects the 2026 expansion of the ABLE program under Section 529A of the Internal Revenue Code. While we strive for accuracy, tax laws and federal benefit rules (such as SSI and Medicaid) are subject to change and may vary by state. This information does not constitute personalized advice; because every financial situation is unique, you should consult with a qualified tax professional or legal counsel before implementing any strategy discussed herein.

Risks & Suitability: All strategies involve material risks. Faith-based financial planning has inherent limitations and may not account for every market variable; therefore, past outcomes are not indicative of future results. Specific mentions of investment strategies, such as 529-to-ABLE rollovers, are for illustrative purposes and do not guarantee a specific outcome.

Intergenerational Stewardship: Helping Three Generations Navigate a Season of Change

At KERUX, we believe we are more than financial advisors; we are partners in the earthly and eternal journeys of the families we serve. One story that captures this mission is how we supported a family spanning three generations through a complex season of transition.

The Challenge

Recognizing the Shift

We had worked for years with a couple well into their golden years. As the mother’s health began to decline due to dementia, we recognized a looming shift. Her daughter—also a KERUX client—would eventually need to step in, not just emotionally, but legally and financially.

The Friction

Balancing Autonomy and Protection

These transitions are often fraught with emotion. It is difficult for a parent to accept a child’s help, especially during cognitive decline. We observed the tension: a mother frustrated by her limitations, an aging father facing his own hurdles, and a daughter seeking a way to lead without creating family friction.

Faithfulness in the “Earthly” details leads to “Abundance” and peace for the entire family.

The Strategy

Facilitating Order

Our role became more than just managing investments. We facilitated a meeting with all parties—mom, dad, daughter, and son-in-law—creating a space for open conversation. We explained how making the daughter a co-trustee and granting her medical powers of attorney wasn’t about taking away autonomy—it was about ensuring that mom had a trusted partner to help her navigate financial and medical decisions as her needs evolved.

We framed the transition as Stewardship, not Surrender. By establishing the daughter as a co-trustee and granting medical powers of attorney, we weren’t removing the mother’s autonomy—we were securing a trusted partner to protect her legacy.

The Result

Peace of Mind for Three Generations

By connecting the family with a trusted attorney and streamlining the legal process, we ensured that the daughter was empowered to act when the time came. This preparation proved invaluable as the family navigated:

  • Assisted Living Transitions: Moving parents with minimal financial friction.
  • Medical Events: Ensuring healthcare directives were clear and legally sound.
  • Financial Continuity: Managing ongoing needs with transparency and peace.

What began as an advisory relationship became a testament to our core belief: that faithfulness in the “Earthly” details leads to “Abundance” and peace for the entire family.

The Beauty of a Life in Order

True wealth is found in the moments where financial planning meets the needs of the heart. What began as an advisory relationship became a testament to our core belief: that faithfulness in the “Earthly” details leads to “Abundance” and peace for the entire family.

By bringing order to the chaos of transition, we didn’t just manage an estate; we protected a family’s ability to love and honor one another during their most vulnerable season. At KERUX, this is what it means to invest in eternity—ensuring that your legacy is marked not by friction, but by the quiet confidence of a life well-stewarded.

Is your family prepared for the seasons ahead?

We specialize in bringing order to the complexities of intergenerational wealth so that you can focus on what matters most: honoring your loved ones. Let’s start a conversation today about securing your family’s peace of mind for the journey ahead.

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Fiduciary Duty & Professional Advice: Advisory services are offered through KERUX, LLC, a registered investment adviser. We are held to a fiduciary standard, legally obligating us to act in our clients’ best interests at all times. This content is for educational and illustrative purposes only and does not constitute personalized investment, tax, or legal advice.

Case Studies & Illustrative Examples: The “Intergenerational Stewardship” story presented is for illustrative purposes to demonstrate our planning process and the types of challenges we help families navigate. While inspired by real-world advisory experiences, this narrative is a composite or anonymized example and does not represent the specific performance or results of any one individual client. Your experience may vary based on your unique financial situation.

Coordination of Professional Counsel: This story discusses legal and medical planning, such as Co-Trusteeships and Medical Powers of Attorney. KERUX, LLC is not a law firm or medical provider. We act as a facilitator to coordinate with your external legal and tax professionals; however, you should consult with your own qualified legal counsel and tax professionals before implementing any legal or estate strategy discussed herein.

Risks & Suitability: All financial strategies involve material risks. Faith-based financial planning has inherent limitations and may not account for every market variable; therefore, past outcomes are not indicative of future results. Actual results will vary and may include the loss of principal.