Ark. Code Ann. § 20-3-101 Title.
This chapter shall be known and may be cited as the “Achieving a Better Life Experience Program Act”.
Achieving a Better Life Experience Program Act
Ark. Code Ann. tit. 20, ch. 3
in effectArk. Code Ann. § 20-3-102 Purpose.
It is the intent and purpose of this chapter to create and establish the Achieving a Better Life Experience Program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295.
Ark. Code Ann. § 20-3-103 Definitions.
As used in this chapter:
(1) “ABLE account” means an account:
(A) Established by an eligible individual;
(B) Owned by the eligible individual; and
(C) Maintained under this subchapter;
(2) “Contracting state” means a state without a qualified ABLE program that has entered into a contract with Arkansas to provide residents of the contracting state access to a qualified ABLE program;
(3) “Designated beneficiary” means the eligible individual who established an ABLE account and is the owner of the ABLE account;
(4) “Disability certification” means, with respect to an individual, a certification to the satisfaction of the United States Secretary of the Treasury by the individual or the parent or guardian of the individual that:
(A) Certifies that:
(i)(a)(1) The individual has a medically determinable physical or mental impairment that:
(A) Results in marked and severe functional limitations; and
(B) Can be expected to result in death; or
(2) Has lasted or can be expected to last for a continuous period of not less than twelve (12) months; or
(b) The individual is blind within the meaning of § 1614(a)(2) of the Social Security Act; and
(ii) The blindness or disability occurred before the individual attained forty-six (46) years of age; and
(B) Includes a copy of the individual's diagnosis relating to the individual's relevant impairment or impairments, signed by a physician meeting the criteria of § 1861(r)(1) of the Social Security Act;
(2) Has lasted or can be expected to last for a continuous period of not less than twelve (12) months; or
(b) The individual is blind within the meaning of § 1614(a)(2) of the Social Security Act; and
(ii) The blindness or disability occurred before the individual attained twenty-six (26) years of age; and
(B) Includes a copy of the individual's diagnosis relating to the individual's relevant impairment or impairments, signed by a physician meeting the criteria of § 1861(r)(1) of the Social Security Act;
(5) “Eligible individual” means an individual who for a taxable year:
(A) Is entitled to benefits based on blindness or disability under Title II or Title XVI of the Social Security Act, 42 U.S.C. § 301 et seq., and the blindness or disability is a preexisting condition that occurred before the date on which the individual attained forty-six (46) years of age; or
(B) Has a disability certification filed with the United States Secretary of the Treasury for the taxable year;
(6) “Member of the family” means a brother, sister, stepbrother, or stepsister;
(7) “Nonqualified distribution” means a distribution from an ABLE account that is not used to pay a qualified disability expense; and
(8) “Qualified disability expense” means an expense related to an eligible individual's blindness or disability that is made for the benefit of the eligible individual who is the designated beneficiary, including without limitation the following expenses:
(A) Assistive technology and personal support services;
(B) Education;
(C) Employment training and support;
(D) Expenses for oversight and monitoring;
(E) Financial management and administrative services;
(F) Funeral and burial expenses;
(G) Health, prevention, and wellness expenses;
(H) Housing;
(I) Legal fees;
(J) Transportation; and
(K) Other expenses that are adopted by rule and consistent with the purposes of this chapter.
Ark. Code Ann. § 20-3-104 Creation of Achieving a Better Life Experience Program Trust.
(a) The Achieving a Better Life Experience Program Trust is created.
(b) The cotrustees of the trust shall be the Secretary of the Department of Human Services, the Commissioner of Arkansas Rehabilitation Services, and the Treasurer of State.
Ark. Code Ann. § 20-3-105 Achieving a Better Life Experience Program Committee — Administration — Authority — Powers.
(a) This chapter shall be administered by the Achieving a Better Life Experience Program Committee, which shall be composed of:
(1) The Secretary of the Department of Human Services, or his or her designee;
(2) The Commissioner of Arkansas Rehabilitation Services, or his or her designee; and
(3) The Treasurer of State, or his or her designee.
(b) The Treasurer of State shall:
(1) Manage the Achieving a Better Life Experience Program Trust under § 20-3-104 for the committee;
(2) Provide office space, staff, and materials for the committee;
(3) Perform other services necessary to implement this chapter; and
(4) Conduct outreach and engage in financial educational activities with individuals with disabilities, stakeholders within the community of individuals with disabilities, and their support system.
(c) The committee shall adopt rules necessary to administer this chapter and to ensure compliance with the Achieving a Better Life Experience Program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295 and federal regulations under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295.
(d) The committee shall:
(1) Establish, develop, implement, and maintain the Achieving a Better Life Experience Program in a manner consistent with this chapter and an Achieving a Better Life Experience program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295, and obtain the benefits provided by an Achieving a Better Life Experience program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295, for the Achieving a Better Life Experience Program, account owners, and designated beneficiaries;
(2) Adopt rules for the general administration of the Achieving a Better Life Experience Program;
(3) Maintain, invest, and reinvest the funds contributed into the Achieving a Better Life Experience Program consistent with the investment restrictions established by the committee and the standard of care described in the prudent investor rule under § 24-2-611; and
(4)(A) Make and enter into contracts, agreements, or arrangements and retain, employ, and contract for the services of financial institutions, depositories, consultants, broker-dealers, investment advisors or managers, third-party plan administrators, and research, technical, and other services necessary or desirable for carrying out the purposes of this chapter.
(B) Contracts entered into by the committee may be for a term of one to ten (1-10) years.
Ark. Code Ann. § 20-3-106 Rules.
Rules adopted under this chapter shall ensure that:
(1)(A) A rollover from an ABLE account does not apply to an amount paid or distributed from the ABLE account to the extent that, not later than the sixtieth day after the date of the payment or distribution, the amount received is paid into another ABLE account for the benefit of the same designated beneficiary or an eligible individual who is a member of the family of the designated beneficiary; and
(B) The limitation under subdivision (1)(A) of this section does not apply to a transfer if the transfer occurs within twelve (12) months after the date of a previous transfer under this chapter for the benefit of the designated beneficiary;
(2) A person may make contributions for a taxable year for the benefit of an individual who is an eligible individual for the taxable year to an ABLE account that is established to meet the qualified disability expenses of the designated beneficiary of the ABLE account;
(3) A designated beneficiary is limited to one (1) ABLE account;
(4) An ABLE account may be established only for a designated beneficiary who is a resident of Arkansas or a resident of a contracting state; and
(5) Other requirements of this chapter shall be met.
Ark. Code Ann. § 20-3-107 Investment direction.
Except as permitted under the Achieving a Better Life Experience Program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295, a person shall not direct the investment of any contributions to or earnings from the program more than two (2) times each year.
Ark. Code Ann. § 20-3-108 ABLE accounts.
(a)(1) An account owner or contributor may establish an ABLE account by making an initial contribution to the Achieving a Better Life Experience Program, signing an application form approved by the Achieving a Better Life Experience Program Committee, and naming the ABLE account owner and the designated beneficiary.
(2) If the contributor is not the ABLE account owner, the ABLE account owner shall also sign the application form.
(3) Any person may make contributions to an ABLE account after the ABLE account is opened.
(b) Contributions to an ABLE account shall be made only in cash.
(c)(1) Total contributions to all ABLE accounts shall not exceed those reasonably necessary to provide for the qualified disability expenses of the beneficiary.
(2) The committee shall establish maximum contribution limits applicable to program ABLE accounts in accordance with the program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295.
(d)(1) Separate records and accounting shall be required by the program for each ABLE account.
(2) Reports shall be made no less frequently than annually to the ABLE account owner.
(e)(1) The program may collect application, ABLE account, or administrative fees to defray the costs of the program.
(2) The application, ABLE account, or administrative fees shall be approved by the committee.
Ark. Code Ann. § 20-3-109 Naming of designated beneficiary and transfers of ABLE accounts.
(a) An ABLE account owner shall have the right to name the designated beneficiary of an ABLE account and at any time to change the designated beneficiary of an ABLE account to an eligible individual who is a member of the family of the former designated beneficiary.
(b) At the direction of an ABLE account owner, all or a portion of an ABLE account may be transferred to another ABLE account whose designated beneficiary is a member of the family of the designated beneficiary of the transferee ABLE account if the transferee ABLE account was created by this chapter or in accordance with an Achieving a Better Life Experience program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295.
(c)(1) Unless prohibited by federal law, upon the death of a designated beneficiary, proceeds from an account may be transferred to:
(A) The estate of a designated beneficiary; or
(B) An account for another eligible individual specified by the designated beneficiary or the estate of the designated beneficiary.
(2) An agency or instrumentality of the state shall not seek payment under 26 U.S.C. § 529A(f), as in effect on January 1, 2019, from the account or its proceeds for benefits provided to a designated beneficiary.
Ark. Code Ann. § 20-3-110 Prohibitions.
(a) Total contributions to the ABLE account established on behalf of a particular designated beneficiary in excess of those reasonably necessary to meet the designated beneficiary's qualified disability expenses are prohibited.
(b)(1) An ABLE account or a legal or beneficial interest in an ABLE account shall not be assignable, pledged, or otherwise used to secure or obtain a loan or other advancement.
(2) An ABLE account or a legal or beneficial interest in an ABLE account is not subject to attachment, levy, or execution by a creditor of an ABLE account owner or designated beneficiary.
Ark. Code Ann. § 20-3-111 Funds exempt from tax.
(a) Except as otherwise indicated in this chapter, interest, dividends, and capital gains from funds invested in the Achieving a Better Life Experience Program are exempt from Arkansas income taxes.
(b)(1) A qualified distribution from a disability savings account established under the Achieving a Better Life Experience Program is exempt from Arkansas income tax with respect to the designated beneficiary's income.
(2)(A) The earnings portion of nonqualified distributions from a disability savings account established under the Achieving a Better Life Experience Program are subject to Arkansas income tax.
(B) The earnings portion of a nonqualified distribution is taxable to the designated beneficiary .
(c) Earnings on a contribution that are included in a refund are subject to Arkansas income tax .
(d)(1) Contributions to a disability savings account established under this chapter may be deducted from the taxpayer's adjusted gross income for the purpose of calculating Arkansas income tax under § 26-51-403(b).
(2)(A) Deductible contributions under this subsection shall not exceed five thousand dollars ($5,000) per taxpayer in a tax year.
(B) If the aggregate amount of contributions by a taxpayer during a tax year exceeds the limitation stated in subdivision (d)(2)(A) of this section, the amount of contributions in excess of the limitation stated in subdivision (d)(2)(A) of this section may be carried forward for purposes of deduction for four (4) consecutive tax years following the tax year in which the contribution was made.
(3) A contribution that has been deducted from a taxpayer's income for a prior tax year under this subsection is subject to recapture if the taxpayer:
(A) Takes a subsequent nonqualified distribution from the account; or
(B) Rolls the account over to a tax-deferred savings program established by another state or institution under 26 U.S.C. § 529A.
(4) A contribution that is subject to recapture under this subsection shall be recaptured by adding the amount previously deducted, not to exceed the amount of the nonqualified distribution, to the taxpayer's adjusted gross income for the tax year in which the nonqualified distribution occurred.
Ark. Code Ann. § 20-3-112 Limitation on liability.
Neither the Achieving a Better Life Experience Program, the Achieving a Better Life Experience Program Committee and each of its members, nor the state shall:
(1) Insure any ABLE account or guarantee any rate of return or any interest rate on any contribution;
(2) Be liable for any loss incurred by any person as a result of participating in the program under this chapter; or
(3) Be deemed to be a guarantor of a positive return on a contribution under this chapter.
Ark. Code Ann. § 20-3-113 Liberal construction.
This chapter shall be liberally construed to comply with the requirements of the Achieving a Better Life Experience Program as provided under the Tax Increase Prevention Act of 2014, Pub. L. No. 113-295.
Source: Public.Resource.Org / UniCourt, Official Code of Arkansas Annotated, Release 78 (2020) (unicourt.github.io/cic-code-ar)URL: https://unicourt.github.io/cic-code-ar/transforms/ar/ocar/r78/gov.ar.code.title.20.htmlFetched: 11/8/2026