CalABLE accounts can be used for many different qualified expenses, ranging from education, employment support, housing, transportation, assistive technology and healthcare.
A CalABLE account lets you build up savings that can help you live your best life. Some examples of expenses eligible for payment from a CalABLE account include:
Tuition for preschool through post-secondary education
Supplies and educational materials
Computers or other assistive technology
Purchase of primary home
Expenses of primary home
Mortgage insurance if required by lender
Home improvement, changes, maintenance, and repairs
*Money you withdraw for housing expenses may affect your SSI benefits if you do not spend it within the same month. To avoid any impact to your SSI benefits, be sure to spend housing money within the same calendar month that you make the withdrawal.
Use of mass transit
Purchase of vehicle
Alteration of vehicle to accommodate a disability
Taxis or ride sharing service
Cost related to gaining and maintaining employment
Health, Prevention and Wellness
Premiums for health insurance
Mental health, medical, vision and dental expenses
Habilitation and rehabilitation services
Durable medical equipment
Long-term services and support
Assistive Technology and Personal Support
Cost of assistive technology and personal support
Communication services and devices
Financial management and administrative services
Oversight and monitoring
Funeral and burial expenses
Keep track of your expenses
We don’t need to see your receipts, but the IRS might. You should keep documentation of your purchases in case the IRS asks for it, and you must provide proof of how you spent the money from your account (which you can track with your ABLE Visa® Card).
What if I buy something that doesn't qualify?
You’ll have to pay tax on investment earnings, plus a 10% penalty on earnings for non-qualified expenses. Also, keep in mind that any non-eligible withdrawals are considered income for the month and could count against your eligibility for Supplemental Security Income (SSI) benefits or Medicaid.