Arkansas ABLE (Achieving a Better Life Experience) accounts are tax-advantaged savings accounts for individuals with disabilities that helps them save and gain financial independence while maintaining any benefits they may be receiving. Contributions to an ABLE account can be made by any person and can grow tax-deferred through a variety of savings and options. There is even a checking account option to use the funds easily.
There are several tax benefits for anyone who contributes to an Arkansas ABLE account, including up to a $5,000 deduction for individual state income tax filers.
Thousands of Arkansans with disabilities and their families depend on a wide variety of public benefits for income, health care, food, and housing assistance. Eligibility for these benefits requires meeting a “resource test” that limits eligibility to individuals who report having less than $2,000 in assets. This means that to remain eligible for public benefits, an individual must—in essence—remain poor.
However, with Arkansas ABLE, eligible individuals and their families can establish ABLE savings accounts that will not affect their eligibility for SSI, Medicaid, and other public benefits.
For additional information visit the Arkansas ABLE Plan.
