SSI Program Issues Updated POMS Policy on ABLE Accounts

On February 26, 2026, the SSI program released an update to POMS SI 01130.740 on Achieving a Better Life Experience (ABLE) Accounts. For the most part this updated POMS repeats and, in some cases, expands on the policy concepts already in existence, in many cases adding case examples for clarification. It does, however, provide or attempt to provide key policy updates that NABWIS members should know about:
 

• POMS SI 01130.740 A explains that effective 1/1/26 a person is eligible to open an ABLE account provided they are “blind or disabled by a condition that began before the individual’s 46^th birthday.” This section explains that prior to 1/1/26 persons with blindness or a disability were eligible only if their condition began before age 26.

For a detailed explanation of this policy change and who might be expected to benefit from it, see the ABLE National Resource Center’s case summary, The ABLE Age Adjustment Act (Sept. 15, 2025). NABWIS members should check your caseloads for beneficiaries whose disabilities began after age 26 and before age 46 as they may now be candidates for an ABLE account.
 

• POMS SI 01130.740 B.2  explains: “The total annual amount of contributions [to an ABLE account] from all sources is limited to the per-donee gift tax exclusion in effect for a given calendar year.” This was true for calendar years 2014 through 2025. However, the One Big Beautiful Bill Act of 2025 (OBBBA) changed this policy, so that effective 1/1/26, the limit on annual ABLE contributions is no longer tied to the annual gift tax exclusion.

 

• This same POMS section lists the annual ABLE contribution limit for 2026 as $19,000, the same as it was for calendar year 2025. This would be correct if the ABLE contribution limit continued to be linked to the one-person gift tax exclusion for the year in question, $19,000 for 2026. However, in announcing that ABLE contribution limits were no longer tied to the annual gift tax exclusion, the IRS made clear that the OBBBA established a $20,000 limit on contributions to ABLE accounts for calendar year 2026 (unless the ABLE beneficiary works and contributes additional money from their earnings). 26 CFR 601.602 (see section 434 of this IRS revenue procedure).

Dated: March 23, 2026

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