ABLE* accounts for disabled people may be rolled over up to $19,000 per year from a 529 plan.

Up to $19,000 (the 2026 annual gift tax exclusion amount) may be rolled over per year from a beneficiary’s 529 to a disability-focused ABLE account. This provision had been scheduled to expire after 2025; the One Big Beautiful Bill Act made it permanent. To open an ABLE account, the individual must have had a significant disability onset before age 46–raised from age 26 effective January 1, 2026 by the ABLE Age Adjustment Act–and meet certain benefit or other certification requirements.

The 529 account can be used to fund the annual ABLE account contribution and expend such funds (principal and earnings) tax-free for a variety of ABLE qualified expenses. Additional amounts may be withdrawn from the 529 account penalty-free when the disabled family member is listed on the 529 account as the beneficiary.

Discussions should include whether to name a special needs trust as the 529 account’s successor owner.

What ABLE accounts do: ABLE (Achieving a Better Life Experience) accounts (under IRC §529A) grow tax-deferred and can be spent tax-free for qualified expenses, without the disabled individual losing public benefits. Qualified expenses include education, housing, transportation, healthcare, job training, medical, legal, and financial advisory expenses, as well as personal support services.