1025.000.00 Cash and Securities (OAA and PTD)

1025.015.17 Achieving a Better Life Experience Account

IM-11 January 28, 2019; IM-96 October 26, 2015

Achieving a Better Life Experience (ABLE) accounts are tax-advantaged accounts that eligible individuals can use to save funds for qualified disability expenses (QDEs).  These accounts are administered by the State Treasurer and are also known as STABLE accounts or MOABLE accounts. Funds in ABLE accounts are excluded in resource determinations for all federally-funded means-tested programs.  An individual is limited to one ABLE account.  The following income types are excluded to the owner/beneficiary of an ABLE account:

  • Distributions from an ABLE account used for QDEs.

    :  Medical expenses paid with funds from an ABLE account cannot be used to meet spend down.
  • Account earnings such as interest, dividends, or other distributed returns to an ABLE account.
  • Contributions to an ABLE account from a third party.

    Example:  Amy’s mother deposits $100 into Amy’s ABLE account.  The amount her mother deposits is not counted as part of Amy’s income.

     Third-party contributions to an ABLE account may need to be assessed for a transfer of property if the contributor is covered by or seeks eligibility for MO HealthNet benefits.

  • Distributions from an excluded trust deposited into an ABLE account.

Income deposited into an ABLE account by the owner/beneficiary is NOT excluded from the participant’s income.

Example:  John receives $500 a month from a part-time job.  He deposits $50 of his earnings into his own ABLE account.  Despite his deposit, his entire wage amount of $500 per month counts in his income determination.

For more information regarding ABLE accounts, visit https://www.moable.com/.