Earnings in your 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.
The assets in your CalABLE account, up to $100,000, will not affect your ability to receive state and federal benefits such as SSI (Supplemental Security Income) and Medicaid.
Plus, California residents with a CalABLE account are protected from both creditors and repayment of medical assistance. Medi-Cal is prohibited from filing a claim against an account after the beneficiary has died, giving individuals the full opportunity to leave a legacy for loved ones.
You, as the beneficiary, your family and friends can contribute up to $15,000 per year. Account owners/beneficiaries who are employed can contribute additional amounts above the $15,000 annual limit. For example, in 2019, 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 $12,140 ($15,180 for Alaska and $13,960 for Hawaii).
If you exceed the $100,000 account balance limit, your SSI benefits would be suspended, but you'd still be eligible for all other public benefits, including Medicaid. Once your balance drops back below the $100,000 limit, your SSI benefits will resume as normal.
The CalABLE Visa® Prepaid Card
CalABLE offers a reloadable, prepaid card as an optional service to participants. CalABLE participants may request a prepaid card when opening an account or by logging into their CalABLE account and clicking on “Prepaid Card Request” on the “Profile” tab. A CalABLE Visa Prepaid Card can be requested for use by an Authorized Legal Representative, the beneficiary, or both. Once activated, participants can load money onto the card by requesting an ACH withdrawal from their CalABLE account and selecting the prepaid card option. The card gives participants added flexibility to pay qualified ABLE expenses and can be used everywhere Visa debit cards are accepted. Funds held on the prepaid card are FDIC insured. For more information on the CalABLE Visa Prepaid Card, including applicable fees and full terms and conditions, please visit CalABLEcard.com.* The CalABLE Visa Prepaid Card is issued by MetaBank®, Member FDIC, pursuant to a license from Visa U.S.A. Inc.
*The CalABLE account is not a MetaBank nor Visa product or service. MetaBank nor Visa endorses or guarantees the products, information, or recommendations provided on this site. Neither MetaBank nor Visa are liable for any failure or products or services advertised on this site outside of the CalABLE Visa Prepaid Card, which is issued by MetaBank, Member FDIC. Please visit CalABLEcard.com for information about the CalABLE Visa Prepaid Card.