What is an ABLE account?

The Achieving a Better Life Experience (ABLE) Act was passed by Congress in 2014 to allow people with disabilities to build savings accounts without affecting their eligibility for government services. Generally, money accrued in an ABLE account can only be used to pay for disability-related expenses, but what this means is fairly broad, and includes anything from housing, transportation, and daily living expenses to equipment, therapies, and education.

In California, the ABLE program is called CalABLE. Unlike ABLE accounts in other states, where the maximum amount cannot exceed $100K, CalABLE accounts can grow up to $529,000. (Note that while Medi-Cal benefits are not affected by any amount of money held in an ABLE account, a balance over $100,000 will jeopardize an individual’s Supplemental Security Income and other government benefits.)

You can add money to your child's ABLE account every year and it can be invested to grow tax-free, and you can withdraw money to spend on your child's living expenses. The funds can be used for your child's housing, educational supplies, transportation, durable medical equipment, therapies, and other things that directly benefit your child.

For more information, see our article 7 Key Questions about CalABLE Accounts Answered.