CalABLE is a savings and investment plan offered by the state of California to individuals with disabilities.

Eligible individuals, family, friends and employers can contribute up to $15,000 a year without affecting the account beneficiary's public disability benefits. CalABLE account owners who work can contribute even more to their accounts. Best of all, earnings on qualified withdrawals from a CalABLE account are federal and California state tax-free.

CalABLE: Key facts

Earnings in a CalABLE account receive federal and California state tax-free treatment.
Withdrawals for qualified expenses are also tax-free.
Up to $15,000 a year can be deposited into a CalABLE account without affecting the beneficiary's public disability benefits.
Account owners/beneficiaries who are employed can contribute additional amounts above the $15,000 annual limit. For example, in 2020, eligible working individuals living in the 48 contiguous United States can contribute an amount equal to their current year gross income up to an additional $12,760.
If you receive SSI benefits, you can save as much as $100,000 in your account with no effect on federal and California state benefits.
California residents with a CalABLE account are protected from both creditors and repayment of medical assistance. Medi-Cal is prohibited from filing a claim to recover any payments after a beneficiary has died, giving individuals the full opportunity to leave a legacy for loved ones. Families can transfer money from a 529 College Savings Plan to an ABLE account (provided the transfer does not exceed the $15,000 maximum annual contribution).
An annual fee of $37 per year is deducted in monthly installments from each CalABLE account. There are also low fees on the underlying investment options plus a state administrative fee. Additional fees apply if you choose not to use certain online features, such as receiving paper statements.

CalABLE is California's ABLE Plan, but any eligible individual in the U.S. may open a CalABLE account.


CalABLE Savings Account

Call 833-Cal-ABLE (833-225-2253) for more information.