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Committee hears bill to align Arkansas ABLE accounts with federal age eligibility
Summary
The House Revenue & Taxation Committee heard HB1063 from Rep. Julie Mayberry to expand state ABLE account eligibility from disability onset age 26 to 46 to match the federal Secure Act 2; no committee vote was taken.
State Representative Julie Mayberry presented House Bill 1063 to the House Revenue & Taxation Committee to align Arkansas law with federal changes that raise the qualifying age for ABLE accounts from 26 to 46.
The change comes from the federal Secure Act 2, which Representative Mayberry and Chris Scott of the treasurer’s office said amended federal rules and will be effective in January 2026. Chris Scott, manager of 529/ABLE programs in the Arkansas Treasurer’s Office, told the committee the federal change “expanded eligibility for the ABLE accounts by raising the qualifying age of disability onset from 26 to 46 years of age.”
The bill would let Arkansans whose disability began up to age 46 open an ABLE account so they can save without risking means‑tested benefits such as Medicaid. Mayberry cited a personal example: her daughter Katie was the state’s first ABLE account holder and the account “helped us actually add an accessible bathroom onto our home.”
Constance Tullis, a traumatic brain injury survivor who testified in favor, described missing the previous age cutoff “by just a few days” and stressed the program’s practical value. “The Arkansas ABLE program is a vital resource for individuals with disabilities offering a chance to save for our futures without jeopardizing the supports we rely on,” Tullis said. She described ongoing medical needs she could not have afforded without Medicaid and told the committee the change would provide opportunities to save for assistive technology and housing.
Treasury staff clarified program limits: the annual contribution limit for ABLE accounts in 2025 is $19,000 (tied to the federal gift tax exclusion), while the state income tax deduction for ABLE contributions is capped at $5,000. Representative Wright asked whether the $5,000 figure was a federal or state limit; Chris Scott explained the $5,000 is the state income tax deduction cap, not the federal contribution limit.
Representative Mayberry told the committee she did not expect a large fiscal hit and said the fiscal impact was less than $20,000. The committee did not take a vote on HB1063; members were told the bill is being presented and debated at this stage.
The committee’s record shows support from the Treasurer’s Office and public testimony urging passage; no formal motions or votes were recorded for this bill at the hearing.
