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Information and Resources developed by the CalABLE Program
What is Cal ABLE?
California Achieving a Better Life Experience (CalABLE) is a new program that will allow qualified individuals with disabilities and their families to open tax-free savings accounts without the worry of losing vital government assistance.
Who is Eligible to Open an ABLE Account?
An individual who has been diagnosed with a disability before age 26 may qualify by meeting one of the following:
Is eligible to receive benefits based on disability, such as Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI);
OR
Has been diagnosed by a qualified physician with a physical or mental disability resulting in marked and severe functional limitations that is expected to last no less than 12 months.
Contributions to an ABLE account, currently limited to $14,000 per year, can be made by family, friends, or the beneficiary themselves. The account’s earnings are allowed to accumulate tax-free, and the withdrawals, provided they are applied to qualifying disability expenses, are tax-free.
California Achieving a Better Life Experience (CalABLE) program will allow people with disabilities to establish a tax-advantaged ABLE account that allows them to save up to $14,000 (currently) per year and up to $100,000 in total without losing vital public benefits such as SSI or SSDI. Earnings in these accounts are not subject to federal income tax or California state income tax, so long as the earnings are spent on Qualified Disability Expenses.
CalABLE began operations July 1, 2016 and is anticipated to open for business summer 2017.
To Learn More About CalABLE:
Like CalABLE on Facebook: https://www.facebook.com/CalABLE
Like CalABLE on Twitter: https://twitter.com/CalABLE_Board
Visit the CalABLE Website: http://www.treasurer.ca.gov/able/
Questions? Email: calable@treasurer.ca.gov
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