There is a social gradient in both arts engagement and wellbeing which may have led to an overestimation of the impact of arts engagement on wellbeing in previous research. Using data from 12,111 older adults in the Health and Retirement Study (2014-2016), we tested whether participation in community arts groups was associated with concurrent wellbeing. We measured life satisfaction (evaluative wellbeing), positive and negative affect (experienced wellbeing), and purpose in life, constraints on personal control, and mastery (eudaimonic wellbeing). We used propensity score matching to remove confounding by a range of demographic, socioeconomic, and health-related factors. Participating in arts groups was associated with higher positive affect (average treatment effect on the treated (ATT)=0.19, 95% CI=0.13-0.24), life satisfaction (ATT=0.10, 95% CI=0.05-0.16), purpose in life (ATT=0.08, 95% CI=0.02-0.14), and mastery (ATT=0.08, 95% CI=0.02-0.13) than not participating. Arts group participation was not associated with negative affect or constraints on personal control. After matching on a range of potential confounders, participation in arts groups was associated with the positive elements of evaluative, experienced, and eudaimonic wellbeing. Facilitating participation in community arts groups could help to promote healthy aging, enabling a growing segment of the population to lead more fulfilling and satisfying lives.