Frequently Asked Questions

CalABLE is a tax-advantaged savings and investment program designed to help eligible individuals save for disability-related expenses without jeopardizing their public benefits.

A CalABLE account is a savings and investment account. ABLE-eligible individuals (and their friends, family and employers) may contribute up to $17,000 a year to a CalABLE account without jeopardizing public benefits such as SSI and Medicaid. Account beneficiaries who work can potentially contribute additional funds.

Earnings and withdrawals in a CalABLE account receive tax-free treatment, provided the funds are used for Qualified Disability Expenses.

Money in your ABLE account can be used to pay for Qualified Disability Expenses (QDEs). An expense is "qualified" if:

• You incurred the expense at a time when you were considered an eligible individual;
• The expense relates to your disability; and
• The expense helps you to maintain or improve your health, independence or quality of life.

An Eligible Individual, or an Authorized Legal Representative (the parent, legal guardian or conservator of an Eligible Individual, or the holder of a power of attorney for an Eligible Individual) can set up an ABLE Account.

No, residents of any U.S. state can open a CalABLE account.

CalABLE accounts may be opened by or on behalf of an eligible individual. An eligible individual is a person who:

• Is entitled to SSI or SSDI because of a disability or has blindness as determined by the Social Security Act; or
• Has a disability certification (a signed diagnosis by a licensed physician).

In all cases, the blindness or disability must have occurred before age 26.

In 2022, the U.S. Congress passed the ABLE Age Adjustment Act. This legislation increases the eligibility age of beneficiaries of ABLE accounts from the onset of disability before age 26 to age 46—beginning January 1, 2026. Currently, only individuals who have a qualifying disability before age 26 are eligible to open a CalABLE account.

F-2690532C-O0123W

Your CalABLE account will not count against your eligibility for federal or California state benefits, unless your account exceeds a balance of $100,000. Once your account exceeds $100,000 your SSI would be suspended and your eligibility for California state and local means-tested programs could be at risk. Your account balance will never affect your eligibility for Medicaid/Medi-Cal.

For example, if you have $2,500 in your CalABLE account, that $2,500 does not count as an asset for purposes of determining your eligibility for federal or California public benefits programs, like SSI or Medicaid.

If you receive SSI benefits and your CalABLE account balance exceeds $100,000, your SSI benefits will be suspended (but not terminated). Once your balance drops below the maximum account balance, you can notify the Social Security Administration to have your SSI benefits resume, and you may resume making contributions to your account.

In addition, money you withdraw and use for housing expenses may affect your SSI benefits if you do not spend it right away. To avoid any impact to your SSI benefits, be sure to spend housing money within the same calendar month that you withdraw it. For example, if you withdraw $500 from your CalABLE account on January 3rd for rent, you must pay that rent money by January 31st. As long as you do not hold housing funds over from one calendar month to the next, they will not affect your SSI benefits.

The U.S. Congress passed the ABLE Age Adjustment Act (S. 331 and H.R. 1219) in 2022. This legislation amends the Internal Revenue Code for qualified ABLE programs by increasing the eligibility age of beneficiaries of ABLE accounts from the onset of disability before age 26 to onset before age 46—beginning January 1, 2026.

Currently, only individuals who have a qualifying disability before age 26 are eligible to open an account in an Achieving a Better Life Experience (ABLE) plan.

F-2690532C-O0123W

CalABLE allows participants to easily establish and maintain their accounts online. To open an account, please visit www.CalABLE.ca.gov and click on "Open an Account." Once your account is open, you can manage it (for example, update your contact information, make a contribution, check your balance or request a withdrawal) by logging into your account on www.CalABLE.ca.gov.

CalABLE accounts have a low annual flat fee of $37. In addition, there is a State Administrative Fee, as well as low fees on the underlying investment options. Additional fees include the following:

• $10 per year if you choose to receive paper statements/mail document delivery.
• $20 if your electronic funds transfer is rejected or if your check bounces.
• $5 for each time you request a check withdrawal.

For more information on CalABLE fees, click here.

There is a minimum contribution amount of $25 to open a CalABLE account. Subsequent contributions minimums are also $25.

Currently, the maximum Annual Contribution Limit is $17,000. This amount is subject to change periodically based on the annual federal gift tax limit, which is currently $17,000.

Account owners/beneficiaries who are employed can contribute additional amounts above the $17,000 annual limit. For example, in 2023, 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 $13,590 ($16,990 for Alaska and $15,630 for Hawaii).

The maximum balance allowed for a CalABLE account is $529,000, but you should consider the impact to your disability benefits. Once your account balance exceeds $100,000, your SSI would be suspended and your eligibility for California state and local means-tested programs could be affected. However, your account balance will never affect your eligibility for Medicaid/Medi-Cal.

Check your available balance and transaction history by logging into your CalABLE account, U.S. Bank Mobile App, or the cardholder website at www.myusbankprepaidcard.com. With the U.S. Bank Mobile App, you can set up email or text alerts to get notified when your Card is loaded and when your balance gets low.

There is no cost to enroll in the Prepaid Card program. Fees associated with using the Card are separate from and, in addition to, the fees that may be charged by the CalABLE Program.

You are responsible for using the amount on your Card for qualified disability expenses. Receipts should be retained in case the Internal Revenue Service or Social Security Administration has questions about an expense. Any funds loaded onto your Prepaid Card and not spent on qualified disability expenses in the same calendar year will be considered an asset for purposes of determining your eligibility for certain means-tested Federal programs, including Medicaid, SSI and SSDI. Any withdrawals for housing expenses that are not spent in the month the withdrawal is loaded onto your Card will also be considered an asset for SSI purposes.

Our customer service teams are ready to help. For inquiries about your CalABLE or Prepaid Card account, including requesting a Card or loading funds to an existing Card, please call CalABLE customer service at 1-833-225-2253. Our customer service hours are Monday through Friday, 9 a.m. to 5p.m. PT, excluding holidays.

If you want to dispute a transaction or need to report the Card lost or stolen, please call the U.S. Bank customer service team at 1-866-335-1721.

Customer service contact information:

Access your account at https://access.calable.ca.gov.

Contributions can be made online to your account at www.CalABLE.ca.gov.

Anyone can contribute to your CalABLE account – you, your friends, your family, business, employer, trust or a corporation.

You can roll over amounts from a 529 college savings plan into your CalABLE account tax-free. Keep in mind that 529 rollovers count as part of your annual $17,000 contribution limit. In addition, the IRS allows for one ABLE Program to ABLE Program transfer every 12 months.

796425

Simply log into your CalABLE account online and request a withdrawal. The withdrawal can be sent to your bank electronically, loaded onto your CalABLE Prepaid Card, or you can request a check be sent to you for a small fee. Through the check option, participants can request a check payable to themselves or a third party to pay bills or other Qualified Disability Expenses.

We offer a gifting tool which allows you to ask friends and family for gifts on holidays, special occasions or to help you reach a financial goal. All you have to do is create an eGift event at any time. We will send out an email with a unique link and a personalized message, instructing recipients on how to make an online contribution. The email can be sent to as many friends and family as you like.

Click here for directions and visuals on how to set up an eGift for your account (PDF).

Check contributions will also be accepted.

1. Make check payable to CalABLE and mail to:
   

   CalABLE
   P.O. Box 44309
   Jacksonville, FL 32231

2. Include the beneficiary name and account number to which the contribution should be applied.

You may have to pay income taxes, plus a 10% additional federal tax and a 2.5% California state tax on the earnings portion of any withdrawal not used for QDEs. Additionally, the non-qualified funds you withdraw may be counted against you for purposes of determining your eligibility for public benefits programs like Supplemental Security Income (SSI).