Understanding ABLE Accounts in Missouri and Kansas

For individuals with disabilities and their families, financial planning has historically come with a difficult dilemma: save money and risk losing vital government benefits, or limit assets to maintain eligibility for programs like Medicaid and Supplemental Security Income (SSI). Fortunately, with the passage of the Achieving a Better Life Experience (ABLE) Act, that tradeoff is no longer necessary.

If you live in Missouri or Kansas, both states offer ABLE account options that allow you to save and invest money without compromising your eligibility for benefits. Here’s what you need to know about the ABLE Act and how it works in your state.

What Is the ABLE Act?

Signed into federal law in 2014, the ABLE Act (named in honor of disability rights advocate Stephen Beck Jr.) enables individuals with qualifying disabilities to open tax-advantaged savings accounts. These accounts allow for the accumulation of funds that do not count against asset limits for Medicaid, SSI, or other public assistance programs, as long as the funds are used for qualified disability-related expenses.

Before this legislation, individuals with disabilities were generally limited to just $2,000 in assets in order to remain eligible for critical services. The ABLE Act changed that, allowing individuals to save, plan, and build a more secure financial future.

Missouri ABLE: MO ABLE Program

Missouri’s ABLE program is known as MO ABLE, and it is administered through a partnership with the STABLE Account Program run by the Ohio Treasurer’s Office. That means Missouri residents benefit from one of the most comprehensive and low-fee ABLE programs in the country while still receiving Missouri-specific perks.

Key Features of MO ABLE:

  • Eligibility: Available to Missouri residents with disabilities that began before age 26.
  • Tax Benefits: Contributions made to a MO ABLE account may be deductible from Missouri state income tax (up to $8,000 per individual or $16,000 for joint filers, per year).
  • Program Access: MO ABLE accounts are managed online via the STABLE Account platform, offering a user-friendly experience.
  • Account Growth: Your money can grow tax-free in professionally managed investment portfolios, or you can choose a FDIC-insured cash option.
  • Benefits Protection: Funds in a MO ABLE account (up to $100,000) are excluded from SSI resource limits. Medicaid eligibility is not affected regardless of the account balance.
  • Medicaid Clawback: Missouri’s ABLE program (MO ABLE) is subject to the federal Medicaid payback provision, also known as the Medicaid “clawback”.

Here’s what that means:

Under federal law, upon the death of the ABLE account beneficiary, any remaining funds in the account may be claimed by the state Medicaid program for reimbursement of Medicaid benefits provided after the ABLE account was opened.

This is often referred to as a Medicaid estate recovery or “clawback” and applies to all ABLE accounts, including those under the MO ABLE program, unless a state has affirmatively opted out or limited enforcement.
 

Learn More or Open an Account:

Visit www.moable.com to explore options or open a MO ABLE account.

Kansas ABLE: Kansas ABLE Savings Plan

Kansas operates its own ABLE program called the Kansas ABLE Savings Plan, which is also offered in partnership with Ohio’s STABLE Account platform. This collaboration allows Kansas residents to enjoy the same trusted infrastructure with investment flexibility and benefit protection.

Key Features of Kansas ABLE:

  • Eligibility: Available to Kansas residents with a disability that began before age 26.
  • Tax Benefits: Contributions to a Kansas ABLE account are not currently deductible from state income tax.
  • Program Platform: Accounts are managed through the STABLE Account website, allowing users to access account details, make deposits, and choose investment strategies online.
  • Qualified Expenses: Funds may be used for housing, education, transportation, assistive technology, health care, basic living expenses, and more.
  • SSI Protection: Up to $100,000 is disregarded for SSI purposes, and Medicaid eligibility is unaffected even beyond that amount.
  • Medicaid Clawback: Kansas’ ABLE program (Kansas ABLE) is subject to the federal Medicaid payback provision, also known as the Medicaid “clawback”

Learn More or Open an Account:

Visit www.kansasable.com to start the process.

How Do ABLE Accounts Work?

Although each state names its program slightly differently, the structure and core benefits of ABLE accounts are the same:

  • Annual Contribution Limit: For 2025, the maximum contribution is $18,000 per year (from all sources combined). If the individual is employed and not saving in a retirement plan, they may be eligible to contribute an additional amount under the ABLE to Work Act.
  • Tax-Free Growth: Interest and investment earnings grow tax-free, and withdrawals are also tax-free if used for qualified disability expenses.
  • One Account Per Individual: An eligible individual may only have one ABLE account at a time.
  • Anyone Can Contribute: Parents, siblings, friends, or even employers can make contributions on behalf of the account holder.
     

What Are “Qualified Disability Expenses”?

Funds from a Missouri or Kansas ABLE account can be used for a wide range of expenses that help improve or maintain the account holder’s health, independence, and quality of life. This includes:

  • Education and job training
  • Housing and rent
  • Healthcare and insurance premiums
  • Transportation (including vehicle purchase or modification)
  • Assistive technology 
  • Legal and financial services
  • Personal support services 
  • Funeral and burial expenses
     

There is no need to get expenses pre-approved, but account holders should keep records of how funds are used in case of an audit.

ABLE Accounts vs. Special Needs Trusts

ABLE accounts are often used in combination with special needs trusts, rather than as a replacement. Here’s how they compare:

FeatureABLE AccountSpecial Needs TrustWho controls it?The individual (or authorized legal representative)A trusteeAge restrictionDisability must begin before age 26No age restrictionContribution limits$18,000/year (plus more if working)No annual limit, but subject to gift taxUse of fundsQualified disability expensesBroader discretionary use allowed by trusteeImpact on benefitsExcluded from asset limits (up to $100k SSI)Excluded from benefit eligibilityTaxationEarnings grow and are withdrawn tax-freeTrust earnings may be taxed annually 

An estate planning attorney can help you determine the right mix of tools based on your family’s needs.

Why Missouri and Kansas Families Should Consider an ABLE Account

Whether you’re helping a child with a disability plan for adulthood or you’re an adult living with a disability trying to gain more financial freedom, ABLE accounts offer practical, accessible, and empowering solutions. With minimal fees, strong investment options, and the ability to preserve benefits, both MO ABLE and Kansas ABLE provide a clear path toward independence.

Take the First Step Toward a More Secure Future

Opening an ABLE account is easy—and it could make a meaningful difference in your long-term financial plan. If you live in Missouri, explore www.moable.com. For Kansas residents, visit www.kansasable.com.

Both programs offer free enrollment, flexible contribution options, and friendly customer service to guide you through the process.

Want help integrating an ABLE account into your estate plan? Our office helps families across Missouri and Kansas protect their future and make smart choices. Contact us today to schedule a consultation.

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