Because of the ABLE Act, disabled individuals in Arkansas can gain financial stability and independence without jeopardizing their access to much-needed Supplemental Security Income (SSI) and Medicaid benefits.
An ABLE account is an investment account for individuals with disabilities. It does not count as an asset for need-based Social Security programs that limit resources and assets for single people and married couples. In addition to making investments and growing funds in the account, you can make tax-free withdrawals to pay for “qualified disability expenses.”
For a free case review from our Arkansas disability lawyers, call (479) 316-0438 today.
How Can the ABLE Act Help You?
The ABLE Act established ABLE accounts, which help disabled individuals own and grow assets they can use to pay for disability expenses.
Preserves Access to Benefits
Most people seeking SSI benefits may not have assets exceeding $2,000. Married couples have an asset limit of $3,000. Having an ABLE account is an exception to this rule. You do not lose Medicaid or SSI eligibility if you have more than $2,000 in savings in an ABLE account.
Features Tax-Free Withdrawals
Arkansas ABLE accounts also allow tax-free withdrawals for funds used for “qualified disability expenses,” such as the following expenses:
- Assistive technology
- Education
- Employment training
- Financial management
- Funeral and burial expenses
- Health and wellness
- Housing
- Oversight and monitoring
- Personal support services
- Transportation
Any withdrawn funds not used for qualified disability expenses will be subject to state-level taxes in Arkansas.
When setting up your ABLE account, you may have to option to get a debit card that lets you easily access funds directly from your ABLE account to pay for daily qualified disability expenses, such as transportation or medical costs.
ABLE account owners should keep careful records of how they spend funds so they can prove that funds were used only for qualified disability expenses to avoid incurring tax.
Allows Contributions from Anyone
ABLE accounts also accept contributions from anyone, including the account owner and beneficiary, family members, friends, and employers. You can even contribute Social Security payments to your ABLE account if you receive them.
Helps Establish Financial Independence
Allowing disabled people to have an asset, like an ABLE account, while also receiving need-based disability benefits helps them establish financial independence. Disabled individuals can save up to secure safe and comfortable housing, get education and job training, or purchase the medical supplies they need for their health and comfort.
How Can Those with Disabilities Get ABLE Accounts in Arkansas?
You can get an ABLE account by setting one up online with our lawyers’ help.
Check Eligibility
Generally, anyone with a physical or mental disability expected to last for at least a year or be terminal can open an ABLE account in Arkansas. ABLE account-eligible disabilities are any that would also make you eligible for SSI or Social Security Disability Insurance from the SSA.
Arrange Medical Records
Arkansas requires individuals to “self-certify” that they meet the disability requirements to open and benefit from an ABLE account. However, you may be asked to provide a signed disability certification from a physician qualifying you for Social Security benefits later, so it’s a good idea to have such information readily accessible so your account isn’t jeopardized.
Open an Account
After confirming your eligibility, we can help you open an account online. You must provide your basic information when setting up the account, such as your name, mailing address, birthday, Social Security number, and banking information.
You don’t have to make any initial contribution to open the account, nor do you have to pay an account opening fee in Arkansas.
Choose Investment Options
When choosing investment options, we can help you consider your immediate and long-term savings goals while respecting your risk tolerance.
Make Contributions
Your account can start receiving contributions immediately after you open it. You can make monthly contributions to your ABLE account yourself, even depositing your monthly Supplement Security Income check in that account. Making regular contributions is the best way to grow an ABLE account.
Tell Friends and Family
When you’ve opened the account, you can tell close friends and family so that they know where to make contributions if they feel inclined. Small contributions from loved ones can end up making a significant impact on your account’s growth.
FAQs About ABLE Accounts in Arkansas
Are There Tax Advantages for ABLE Account Contributions?
Arkansas allows single filers to deduct up to $5,000 in ABLE account contributions from their income tax returns, and married couples filing jointly to deduct up to $10,000. This may benefit any friends or family who regularly contribute to your account.
Are There Fees for ABLE Accounts?
The annual fee for an open ABLE account in Arkansas is $56, but you do not have to pay it when opening the account.
Are There Are Age Requirements for ABLE Accounts?
Your disability must have occurred before age 26 for you to open an ABLE account in 2025. In 2026, in Arkansas, the age requirement for disability onset will be raised to 46 or younger.
Can You Open an ABLE Account in Aransas if You Live Out of State?
Arkansas accepts ABLE account applications from disabled individuals who live out of state, and our lawyers can help you open an account even if you are not an Arkansas resident.
Is There an Annual ABLE Account Contribution Limit?
People may only contribute up to the federal gift tax exclusion limit, which is $18,000 in 2025.
Do ABLE Accounts Have Limits?
The limit for ABLE accounts in Arkansas in 2025 is $366,000. You can have up to that amount in an ABLE account while still receiving SSI and Medicaid benefits.
Do You Have to Make a Contribution to Open an ABLE Account?
There is no contribution requirement to open an ABLE account.
Call Our Disability Attorneys in Arkansas Today
For a free case assessment from our Bella Vista, AR disability lawyers, call (479) 316-0438 today.