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

Up to $19,000 rollover per year from a beneficiary’s 529 to a disability-focused ABLE account was made permanent as of 2025. To open an ABLE account, the individual must have had a significant disability onset before age 46 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 Additional amounts may be withdrawn from the 529 account penalty-free when the disabled family member is listed on the 529 account as the beneficiary.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.