CalABLE & ABLE Accounts
California Achieving a Better Life Experience (CalABLE) is a program that allows people with disabilities to establish a tax-advantaged ABLE Account that allows them to save up to $100,000 without losing public benefits such as SSI and Medi-Cal. Earnings in these accounts are not subject to federal income tax or California state income tax, as long as funds are spent on Qualified Disability Expenses.
Prior to the federal ABLE Act signed in 2014, an individual receiving benefits from a public program was not able to save more than $2,000.
Eligibility
Eligibility Requirements
To be eligible to establish an ABLE or CalABLE account, an individual must have a disability that began before age 26, although the ABLE Age Adjustment Act changes this to age 46, effective January 1, 2026. In addition, the individual must meet at least one of the following criteria:
- Be entitled to Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) because of their disability; or
- Be able to provide “self-certification” of their disability and diagnosis. This means the individual has a written, signed diagnosis from a licensed physician that is available upon request.
Contributions
Account Contributions
Contributions to an ABLE account are currently limited to $18,000 per year, and can be made by family, friends, or the person themselves. The account’s earnings are allowed to grow tax-free, and the withdrawals, provided they are applied to qualifying disability expenses, are tax-free.
Qualified Expenses
Qualified Disability Expenses
An expense is considered “qualified” when it relates to the person’s disability and helps them maintain or improve their health, independence, or quality of life. Qualified Disability Expenses are not limited to medical expenses. They may include other expenses such as cost of education, housing, transportation, employment support, home improvement and future planning, e.g. funeral services.
CalABLE Resources
