HB1239 Summary

• Creates the Achieving a Better Life Experience (ABLE) Program in Arkansas Code Title 20, Chapter 3, establishing tax-advantaged savings accounts for individuals with disabilities who became disabled before age 26.

• Establishes an ABLE Program Committee composed of the Director of the Department of Human Services, Director of Arkansas Rehabilitation Services, and the Treasurer of State to administer the program and adopt necessary rules.

• Allows eligible individuals to establish ABLE accounts for qualified disability expenses including assistive technology, education, employment training, health, housing, legal fees, transportation, and other approved expenses.

• Exempts investment earnings and qualified distributions from ABLE accounts from Arkansas income tax, while nonqualified distributions remain subject to state income tax.

• Limits account holders to one ABLE account, restricts contributions to cash only, prohibits using accounts as loan collateral, and protects accounts from creditor attachment or seizure.