Stacy Miller, CFP®, MQFP®, Author at Military Financial Advisors Association

I’ve been asked by disabled veterans many times whether they qualify for an ABLE account, formally known as a 529 ABLE plan. Until now, my answer has often been no; not because their disabilities weren’t real or significant, but because the rules required that the qualifying disability begin before age 26. That restriction excluded many servicemembers whose disabilities occurred later in life. Beginning in 2026, that changes in a meaningful way thanks to the ABLE Age Adjustment Act.

What Is an ABLE Account?

The original Achieving a Better Life Experience (ABLE) Act was designed to allow individuals with disabilities to save money without putting essential benefits at risk. ABLE accounts are modeled after 529 college savings plans and offer tax-free growth and tax-free withdrawals when funds are used for qualified disability expenses. Just as importantly, properly structured ABLE savings generally do not count against means-tested programs such as Supplemental Security Income (SSI) and Medicaid. For individuals who rely on these benefits, saving too much in the wrong type of account can unintentionally jeopardize critical support, making ABLE accounts a valuable planning tool.

How ABLE Accounts Work

The account is owned by the disabled individual, though a parent, guardian, or agent under a power of attorney may assist with management. Contributions are made with after-tax dollars, the account grows tax-free, and withdrawals remain tax-free when used appropriately.

What Counts as a Qualified Disability Expense?

What makes ABLE accounts especially powerful is the broad definition of “qualified disability expenses.” These expenses extend well beyond medical care and can include housing, transportation, education, assistive technology, personal support services, and other costs that support health, independence, and quality of life. For disabled veterans, this flexibility matters. Many service-connected needs don’t fit neatly into traditional benefit categories, yet they are essential to day-to-day stability and dignity.

The Historical Limitation That Affected Veterans

Historically, ABLE accounts came with a significant limitation that excluded many veterans: the disability had to begin before age 26. For servicemembers injured during later enlistments, deployments, or training, or whose conditions developed or were diagnosed years after service, this requirement was a nonstarter.

The 2026 Rule Change: Age Limit Increases to 46

Beginning in 2026, the age-of-onset requirement increases from 26 to 46. This is a substantial and long-overdue shift for veterans. Many service-connected disabilities occur well after age 26, particularly for those who served into their 30s or 40s. Under the new rule, a much larger group of disabled veterans may qualify for an ABLE account for the first time.

Who Qualifies for an ABLE Account?

In addition to the age requirement, the individual must meet the Social Security definition of disability. Veterans automatically qualify if they are already receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). Those not receiving these benefits may still qualify through self-certification, attesting under penalty of perjury that they have a medically determinable physical or mental impairment that results in marked and severe functional limitations, has lasted (or is expected to last) at least 12 months or result in death, and began before the applicable age limit.

Why ABLE Accounts Matter for Veterans

For veterans who become newly eligible, an ABLE account can serve as a financial safety valve. It allows savings to exceed the typical $2,000 SSI asset limit without immediately losing benefits, provided balances remain within ABLE-specific thresholds. While SSI cash benefits may be suspended once an ABLE balance exceeds $100,000, Medicaid eligibility typically continues, and overall account limits are often much higher depending on the state. When coordinated thoughtfully, this flexibility can be especially powerful alongside VA disability benefits, which are not means-tested.

Repurposing 529 Education Savings

Another advantage that has become increasingly relevant is the ability, in certain circumstances, to move funds from a traditional 529 college savings plan into an ABLE account. For families who originally saved for education but later faced a disability diagnosis, whether for a veteran or a dependent, this provision allows education savings to be repurposed for disability-related needs without triggering taxes or penalties, subject to annual and lifetime limits.

ABLE Accounts as Part of a Broader Plan

From a planning perspective, ABLE accounts are not a cure-all. They do not replace the need for careful coordination with VA benefits, special needs trusts, or long-term care planning. However, they can complement those strategies by providing accessible, flexible funds for everyday expenses that support independence and quality of life.

A New Opportunity for Disabled Veterans

Now that we are in 2026, ABLE accounts deserve renewed attention, especially for disabled veterans who were previously excluded by outdated eligibility rules. If you or someone you love is a veteran living with a service-connected disability that began later in life, this change may open the door to new planning opportunities. Used thoughtfully, an ABLE account can provide more than tax advantages. It can offer peace of mind, autonomy, and financial breathing room; things every veteran deserves.

Curious about the changes to ABLE and looking for help? A MFAA financial advisor can help.

The Veteran’s Guide to TSP Rollovers

Separating and retiring military servicemembers (& federal employees) are often faced with a number of financial decisions. One of the questions clients ask me most often during this transition is whether or not they should rollover their Thrift Savings Plan (TSP) assets into an IRA. It is not a straightforward yes or no answer, but there are pros and cons to every rollover that should be considered.

In today’s blog, I will list some of the pros and cons of a TSP rollover and provide a resource in the event you would like to take a deeper dive and learn more about the TSP.

The Pros of Completing a TSP Rollover into an IRA

Easier to organize, consolidate, and aggregate with other retirement accounts – Being organized, consolidating, and aggregating your assets is generally something we recommend to clients at all stages of your financial journey.

Access to full professional investment management – This is a benefit if you are not an investment “do-it-yourselfer,” and you want advice on which investments to choose, regardless of where those investments are.

Wider range of investment choices – The TSP offers participants 5 individual funds (G, F, C. S, I Funds) plus 10 target date funds called Lifecycle Funds (L Funds). In 2022, a new option, the Mutual Fund Window (MFW) was introduced which did provide an opportunity for more investment choices at a steep cost.

G Fund – Government Securities
F Fund – Fixed Income Index
C Fund – Common Stock Index
S Fund – Small Cap Stock
I Fund – International Stock

No high Mutual Fund Window (MFW) Transaction Fees – Participants must pay an annual fee of $150 (including a $95 maintenance fee and a $55 administrative fee) and trading fees of $28.75 per trade!

No MFW rules, including limits on the balance that can be invested – Participants must have a minimum of $40,000 in overall value in the TSP, with a minimum initial contribution of $10,000 into the MFW, limited to a maximum of 25% of the participants overall TSP account value at any given time. Sounds confusing because it is.

Potentially better customer service and communication – The TSP customer service representatives are just that, customer service representatives. They are not investment advisors.

Potentially better design and user-friendliness of associated website, software and apps – Financial planners and custodians are focused on the client experience, as well as the financial planning deliverables. While the TSP website and technology was updated in 2022, it was not necessarily better.

Inheritance rules for IRAs can be better for the beneficiaries – Non-spouse beneficiaries cannot keep the TSP account.

The Cons of Completing a TSP Rollover into an IRA

Publicly traded mutual fund and ETF expense ratios can be higher than those for TSP funds – Total expense ratios for TSP Individual and Lifecycle Funds are all less than 0.080% (and most under 0.055%), whereas other publicly traded expense ratios can be much more than that.

Lost access to G Fund – This fund is invested in short-term U.S. Treasuries exclusively issued to the TSP, and the payment of interest and principal is guaranteed by the U.S. Government.

Complexity of managing military combat zone tax-free contributions – Bottom line, the earnings on tax-free combat zone contributions are taxable (unless they were contributed into a Roth TSP. Therefore the TSP account may include a commingling of tax-free combat pay, taxable earnings on those (tax-free) combat-pay contributions, and taxable contributions from non-combat income. When it is time to withdraw (or rollover) these commingled funds, it can be very complicated.

Conflict of interest making this recommendation – If you are paying for financial advice, understand how rolling over your TSP could impact what you pay. If you’re paying based on asset management or purchasing a product (insurance, annuity) with the proceeds, rolling over your TSP could cost you more.

You can rollover other retirement accounts into the TSP – If you like the TSP and want to stay, or even keep just some assets in the plan (this is one possible solution to the combat zone commingling problem), you can rollover other retirement accounts into the plan.

There can be less creditor protection in an IRA – Assets are more protected in the TSP from bankruptcies.

As you can see, for veterans with TSP accounts, making the decision to rollover their TSP assets can be challenging. The transition from civilian to veteran has many financial decisions but this is an important one. If you are interested in a deeper understanding of the TSP overall, I wrote a paper for other financial advisors to help them help other veterans. You can read it here: Navigating the Thrift Savings Plan: Planning Opportunities to Support Federal Employees, Military Servicememebers, and Veterans.

Ready to learn more about how an MFAA advisor can help you decide if rolling over a TSP is the right decision for you? Find your options here.