Earnings in your CalABLE account are 100% federal and California state tax-deferred. Withdrawals to pay for disability-related expenses are 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. In certain situations, 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. For more information about Medi-Cal recovery, please refer to the CalABLE Disclosure Statement (PDF).
You, as the beneficiary, your family and friends can contribute up to $17,000 per year. 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).
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 U.S. Bank Solutions Premier Prepaid Card (“Prepaid Card”) is a reloadable prepaid card offered by CalABLE program as an optional feature to participants. CalABLE participants may request a Prepaid Card at the at the time of enrollment in the CalABLE Program, or if you have an existing CalABLE account, you can request a Prepaid Card at any time by logging into your CalABLE account and requesting a Prepaid Card on the “Prepaid Cards” tab and then select “Order”. The 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 a withdrawal from their CalABLE account on the “Financials” tab and selecting the prepaid card option. The Card gives participants added flexibility to pay qualified disability expenses everywhere Visa debit cards are accepted. Participants are generally protected from all liability for unauthorized transactions with Zero Liability. For more information on the U.S. Bank Solutions Premier Prepaid Card, please visit www.myusbankprepaidcard.com.
*The CalABLE account is not a U.S. Bank nor Visa product or service. U.S. Bank nor Visa endorses or guarantees the products, information, or recommendations provided on this site. Neither U.S. Bank nor Visa are liable for any failure or products or services advertised on this site outside of the U.S. Bank Solutions Premier Prepaid Card, which is issued by U.S. Bank National Association pursuant to a license from Visa U.S.A. Inc. © 2022 U.S. Bank. Member FDIC. Please visit www.myusbankprepaidcard.com for information about the U.S. Bank Solutions Premier Prepaid Card.*
Meet Amelia Reyes
"I want Amelia to have money in her name, like her brothers already can. A CalABLE account helps prepare her for living life on her terms, and even her great-grandma can help her save."