A CalABLE account is a tax-free savings and investment plan to help Californians with a disability save for large or small expenses to keep them healthy and improve quality of life.
Who is Eligible:
- Individuals with a disability that occurred before age 26
- Meets the eligibility criteria for disability benefits like SSI (Supplemental Security Income) and/or SSDI (Social Security Disability Insurance)
- Individuals who do not receive SSI or SSDI, but still meet the age onset requirement, may be eligible if there is a diagnoses by a qualified physician
Benefits:
- Those who receive SSI benefits can save as much as $100,000 in the account with no effect on federal and California state benefits
- Annual contributions are limited to $15,000 per year, which can be made by family, friends, or the individual without affecting public disability benefits
- Those who are employed can contribute additional amounts above the $15,000 annual limit
- Earnings in a CalABLE account are 100% federal and California state tax-free
- Withdrawals to pay for disability-related expenses are also federal and California state tax-free
What is a Qualified Disability Expense?
- Any expense that helps maintain or improve health, productivity, independence, or quality of life
- Examples of eligible expenses include education, employment support, housing, transportation, assistive technology and healthcare expenses
How it Works:
- Open an account and add a minimum of $25
- Select your investment or saving option
- Add money to your account at anytime
- Withdraw money as needed
More Information:
- Planning the Future of Your Child With Special Needs (9/15/22): A webinar from the UC Davis MIND Institute providing information on Special Needs Trusts, Understanding Public Benefits, and CalABLE as a tool for your financial future.
For more information or to open an account, please visit the CalABLE website or YouTube channel.
Last modified: October 5, 2023
