Frequently asked questions
Scroll down to see answers to things we get asked a lot. If you're looking for something specific, enter or choose a keyword below.
- ALR
- Benefits
- Eligibility
- Fees
- General
- Gifting
- How it works
- Linking bank accounts
- Opening an account
- Prepaid card
- Qualified expenses
- Successors and Estates
- Tax benefits
- Will having a CalABLE account make me ineligible for Medicaid?
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No. Having a CalABLE account doesn’t count towards your eligibility for Medicaid regardless of the amount saved in the account.
- What happens if I withdraw money for a non-qualified expense?
- You may have to pay income taxes, plus an additional 10% federal tax and a 2.5% California state tax on the earnings portion of any withdrawal for a non-qualified expense. A withdrawal used for non-qualified expenses, or for housing expenses even if they are qualified disability expenses, may count... Read more
- How do I prove a qualified expense?
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Keep your receipts and documentation for all qualified expenses in case the IRS wants to see them. We don’t require proof of your expenses, but you should have it for your records.
- Can I use funds to pay for housing or rent?
- Yes, you can use money from a CalABLE account for housing expenses. If you’re eligible for Supplemental Security Income (SSI), the money must be used within the month it was withdrawn so it doesn’t affect your SSI eligibility. The balance held in your CalABLE account doesn’t affect other housing... Read more
- What are qualified expenses?
- There’s a wide range of qualified expenses that cover most expenses related to your disability. Some of these include: living expenses, education, housing, transportation, employment, vacation, job training, career support, assistive technology, personal support services, health, prevention,... Read more
