Sarah has worked with her financial planner for years, carefully navigating the $2,000 asset limit that governs her adult son Marcus’s Supplemental Security Income eligibility. Every time Marcus received a birthday check from grandparents or earned money from his part-time work, Sarah faced an impossible choice: spend it immediately, hide it (and risk losing benefits), or watch Marcus lose the SSI and MaineCare that keep him stable and supported.
For years, Sarah heard about ABLE accounts but assumed Marcus didn’t qualify. His autism diagnosis came at age 8, and by the time she learned about ABLE accounts years later, Marcus was 30—well past the age 26 eligibility cutoff she’d read about. She moved on, resigned to the perpetual financial tightrope that defines so many disability-planning conversations.
Then, on January 1, 2026, everything changed.
The ABLE Age Adjustment Act expanded eligibility nationwide, and suddenly Marcus—along with an estimated 6 million other Americans—became eligible for the first time. In Maine, this means thousands of adults with disabilities can now open ABLE ME accounts, save money without jeopardizing critical benefits, and build financial security that was previously impossible.
Yet three months into 2026, most Maine families still don’t know this opportunity exists.
In 30 years of providing community support services to adults with intellectual and developmental disabilities across Central Maine, we’ve learned that information matters. Policy changes that affect benefits, planning, and financial security can create new opportunities—but only when families know they exist.
If you’ve never heard of ABLE accounts, or if you assumed your loved one didn’t qualify, this guide explains what changed, who now qualifies, and how Maine’s unique ABLE ME program works.
What Changed on January 1, 2026?
The original ABLE Act, passed in 2014, created tax-advantaged savings accounts for people with disabilities—but only if their disability began before age 26. This arbitrary cutoff excluded millions of people who developed disabilities later in life through accidents, illness, military service, or adult-onset conditions.
The ABLE Age Adjustment Act changed that. As of January 1, 2026, eligibility expanded to include anyone whose disability began before age 46. It doesn’t matter how old you are now—what matters is when the disability began.
For Maine families, this expansion is significant. Adults who were previously ineligible can now open ABLE ME accounts through Maine’s unique program administered by Bangor Savings Bank and the Maine State Treasurer’s office.
Understanding ABLE ME: What Makes Maine’s Program Different
Every state offers an ABLE program, but Maine’s approach is notably different—and understanding these differences matters when deciding whether to use Maine’s program or explore out-of-state options.
The Maine ABLE ME Advantage: Simplicity and Accessibility
ABLE ME is the only bank-administered ABLE program in the nation. Unlike most state programs that function like investment accounts (similar to 529 college savings plans), Maine’s program is structured as an FDIC-insured checking account through Bangor Savings Bank.
What this means practically:
- Zero fees
- Free debit card for everyday purchases
- Immediate access to funds
- No minimum balance requirements
- No investment decisions to make
- FDIC insurance up to $250,000
The tradeoff: Maine’s ABLE ME account does not earn interest or investment returns. Your money will not grow. For families prioritizing simplicity, accessibility, and fee-free banking, this structure works well. For families planning to save larger amounts long-term and wanting investment growth, exploring out-of-state ABLE programs with investment options may make sense.
The good news: You’re not limited to Maine’s program. Most state ABLE programs accept out-of-state residents, and you can transfer funds between state programs if your needs change.
Who Qualifies for ABLE ME in 2026?
To open an ABLE ME account, you must meet two criteria:
- Age of Disability Onset Your disability must have begun before your 46th birthday. There’s no upper age limit on when you can open an account—what matters is when the disability started, not your current age.
- Severity of Disability You must have a significant disability that meets Social Security Administration criteria. You automatically qualify if you currently receive:
- Supplemental Security Income (SSI) based on disability
- Social Security Disability Insurance (SSDI)
- Disabled Adult Child (DAC) benefits
If you don’t receive these benefits but believe you have a qualifying disability, a licensed physician can certify that you have a condition resulting in “marked and severe functional limitations” expected to last at least 12 months or result in death.
Important for Maine residents: You must be a Maine resident to open an ABLE ME account. Maine’s program does not accept out-of-state applicants, though Mainers can open accounts in other states that do accept non-residents.
How ABLE Accounts Protect Benefits: The $2,000 Problem Solved
Here’s why ABLE accounts matter so profoundly for individuals receiving SSI or MaineCare:
The $2,000 Asset Trap
SSI recipients face a strict resource limit: $2,000 in countable assets for individuals, $3,000 for couples. Exceed this limit by even one dollar, and benefits disappear. This creates situations where saving money becomes a liability, accepting gifts threatens healthcare coverage, and building any financial cushion can jeopardize stability.
How ABLE Changes Everything
Money in an ABLE account—up to $100,000—does not count toward SSI’s asset limit. This creates space for:
- Emergency funds for unexpected expenses
- Saving for assistive technology or vehicle modifications
- Accepting monetary gifts from family without penalty
- Building toward major purchases like housing deposits
- Setting aside funds for future needs
Critical detail: If your ABLE balance exceeds $100,000, SSI payments are suspended (not terminated). Once the balance drops below $100,000, benefits automatically resume—no need to reapply.
MaineCare Protection
In Maine, ABLE accounts offer exceptional protection for MaineCare (Medicaid) eligibility. Unlike some states, Maine has opted for the most protective interpretation of federal law: Maine does not recover funds from ABLE accounts after death to repay MaineCare benefits received.
This makes ABLE ME genuinely payback-free, unlike first-party special needs trusts where Medicaid reimbursement is required at death.
What Can ABLE Funds Be Used For?
ABLE accounts can only be used for “Qualified Disability Expenses”—but this category is broader than many families realize.
Qualified expenses include:
- Housing (rent, mortgage, utilities, home modifications)
- Transportation (vehicle purchase, modifications, public transit, rideshare)
- Education and job training
- Assistive technology and personal support services
- Health and wellness (medical, dental, therapy not covered by insurance)
- Financial management and administrative services
- Legal fees related to disability
- Funeral and burial expenses
- Basic living expenses
The housing advantage: This is significant. Distributions from ABLE accounts used for housing expenses do NOT reduce SSI payments, while cash gifts for rent from family or trusts cause dollar-for-dollar SSI reductions. ABLE accounts provide a legal pathway to help with housing costs without benefit penalties.
Contribution Limits and Account Rules
Annual Contribution Limit: $20,000 per year (2026) from all sources combined. Anyone can contribute—family, friends, the account holder themselves, trusts, or employers.
Total Account Balance: Maine allows up to $545,000 total in ABLE ME accounts before contributions must stop.
Tax Treatment: Contributions are made with after-tax dollars (not tax-deductible). Growth is tax-free when used for qualified expenses. Maine does not offer a state tax deduction for ABLE contributions.
One Account Per Person: Federal law allows only one ABLE account per person, though you can transfer between state programs.
ABLE Accounts and Special Needs Trusts: Working Together
ABLE accounts don’t replace special needs trusts—they complement them. Many Maine families benefit from using both tools strategically.
When ABLE works well alone:
- Smaller amounts (under $100,000 for SSI protection)
- An individual wants direct control over funds
- Simplicity is a priority
- Ongoing expenses like housing, transportation, and daily needs
When trusts make sense:
- Larger inheritances or settlements
- Long-term care planning
- Complex family situations
- An individual unable to manage funds independently
The powerful combination: Trusts can distribute funds to ABLE accounts, which the individual then controls and spends. This provides professional oversight (through the trust) while preserving individual autonomy and avoiding SSI payment reductions for housing.
Families navigating both tools should work with an attorney experienced in Maine special needs planning to structure accounts optimally.
How to Open an ABLE ME Account
Opening Maine’s ABLE ME account is straightforward:
Step 1: Verify Eligibility Confirm your disability began before age 46. If you receive SSI, SSDI, or DAC benefits, gather that documentation. If not, schedule an appointment with your physician to complete disability certification.
Step 2: Gather Information You’ll need:
- Date of birth
- Social Security number
- Maine residential address
- Email address
- Information about your disability and any Social Security benefits
- Authorized representative information (if designating someone to help manage the account)
Step 3: Open Your Account Visit any Bangor Savings Bank branch or go online to maine.gov/treasurer/ABLE-MAINE for enrollment information. There’s no minimum initial deposit required, though many people start with $25-$50.
Step 4: Start Using It Once open, you can deposit funds, use your debit card for qualified expenses, and begin building financial security.
Common Questions Maine Families Ask
Q: Can my loved one have both SSI and an ABLE account? Yes. ABLE accounts were designed specifically to allow people receiving SSI and MaineCare to save without losing benefits.
Q: What happens if we accidentally use funds for non-qualified expenses? The earnings portion of that withdrawal becomes taxable and may face a 10% penalty. The contribution portion (your original deposits) is not penalized. Keep receipts and track how funds are used.
Q: Can we open accounts in multiple states? No. Federal law allows only one ABLE account per person. However, you can transfer your account between state programs if you find a better fit elsewhere.
Q: What happens to the ABLE account when the person dies? In Maine, any remaining funds go to the designated beneficiary named in the account. Importantly, Maine does NOT seek MaineCare payback from ABLE accounts—a significant advantage compared to first-party special needs trusts.
Q: Should we use Maine’s program or look at other states? It depends on your priorities. Maine’s checking account structure offers simplicity, zero fees, and immediate access—ideal for managing ongoing expenses. If you want investment growth potential, explore programs like Ohio’s STABLE Account or Virginia’s ABLE Now, which offer multiple investment portfolios. Most accept out-of-state residents.
Taking the Next Step
The expansion of ABLE eligibility represents one of the most significant policy changes for disability planning in a decade. For thousands of Maine adults who were previously excluded, this creates new possibilities for financial stability, independence, and dignity.
If you’re wondering whether this applies to your situation:
Contact ABLE ME directly: Maine State Treasurer’s Office 207-624-7477, visit maine.gov/treasurer/ABLE-MAINE, or
Bangor Savings Bank bangor.com/able-home for more details.
Consult with benefits specialists: Work incentives benefits counseling through Maine’s Division of Vocational Rehabilitation can help you understand how an ABLE account fits with your specific benefits situation.
Talk with special needs planning attorneys: For families with complex planning needs, trusts, or significant assets, an attorney experienced in Maine disability planning can ensure ABLE accounts integrate properly with your overall plan.
Why This Information Matters
Policy changes that affect benefits and financial planning often go unnoticed until families stumble across them—sometimes years after they could have been helpful. The January 2026 ABLE expansion is significant precisely because it extends opportunities to people who were arbitrarily excluded based solely on when their disability began.
ABLE accounts don’t solve every financial challenge facing people with disabilities. Asset limits remain restrictive. Benefits systems remain complex. But for families who can now use ABLE accounts for the first time, this tool creates possibilities that didn’t exist before—the possibility of saving for emergencies, accepting help without penalty, and planning for the future with some measure of security.
If your loved one’s disability began before age 46, you now have options you didn’t have a year ago. Understanding what’s available is the first step toward determining whether ABLE accounts fit your situation.
Learn More About Community Support Services
Families Matter provides person-centered community support services for adults with intellectual and developmental disabilities across four Central Maine locations. For information about our programming:
- Hallowell: Jane Lerette – 207-621-1023
- Gardiner: Erica Poulin – 207-203-0004
- Skowhegan: Melinda King – 207-621-2992
- Waterville: Debra Wells – 207-616-3284
Understanding your options is the foundation of good planning. We’re here to answer questions about community support services as you navigate what’s next.