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North Carolina has enacted a law that protects NC ABLE accounts from Medicaid clawback following the account owner’s death, unless the claim is required by federal law.

This legislative change marks a significant win for disability rights and financial security. Previously, Medicaid could recover all costs from NC ABLE accounts upon a beneficiary’s death, potentially depleting savings meant to enhance quality of life. With this new law, North Carolina joins a growing number of states that limit Medicaid recovery, allowing families a better opportunity to preserve these funds.

NC ABLE accounts are designed to help individuals with disabilities save for qualified expenses without jeopardizing eligibility for Medicaid or SSI. This protection strengthens the purpose of the NC ABLE program—to empower people with disabilities to achieve greater independence and financial stability.

House Bill 476 (S.L. 2025-19)

The ABLE Age Adjustment Act amends Section 529A of the Achieving a Better Life Experience (ABLE) Act to allow more individuals who have a disability to be eligible for an ABLE account effective Jan. 1, 2026. The age of eligibility is increased to allow individuals who have an onset of disability prior to the age of 46 (instead of 26). This extends the opportunities of financial independence and empowerment for people with disabilities.

NC ABLE accounts are open to individuals of all ages with the onset of disability prior to the age of eligibility (46 in 2026).

Now, even more people, including Veterans, can save in a tax-advantaged account, maintain eligibility for crucial public benefits while building assets and gain financial independence, which contributes to a better life experience.