What is CalABLE?
CalABLE is a tax-advantaged savings and investment program designed to help eligible individuals save for disability-related expenses without jeopardizing their public benefits.
What is a CalABLE account?
A CalABLE account is a savings and investment account. ABLE-eligible individuals (and their friends, family and employers) may contribute up to $15,000 a year to a CalABLE account without jeopardizing public benefits such as SSI and Medicaid. Account beneficiaries who work can potentially contribute additional funds.
Earnings and withdrawals in a CalABLE account receive tax-free treatment, provided the funds are used for Qualified Disability Expenses
How can I use a CalABLE account?
Money in your ABLE account can be used to pay for Qualified Disability Expenses (QDEs). An expense is "qualified" if:
- You incurred the expense at a time when you were considered an eligible individual;
- The expense relates to your disability; and
- The expense helps you to maintain or improve your health, independence or quality of life.
Who can set up a CalABLE account?
An Eligible Individual, or an Authorized Legal Representative (the parent, legal guardian or conservator of an Eligible Individual, or the holder of a power of attorney for an Eligible Individual) can set up an ABLE Account.
Do I have to be a resident of California to open an account?
No, residents of any U.S. state can open a CalABLE account.
Who is eligible to open a CalABLE account?
CalABLE accounts may be opened by or on behalf of an eligible individual. An eligible individual is a person who:
- Is entitled to SSI or SSDI because of a disability or has blindness as determined by the Social Security Act; or
- Has a disability certification (a signed diagnosis by a licensed physician).
In all cases, the blindness or disability must have occurred before age 26.
Will a CalABLE account affect my government benefits?
Your CalABLE account will not count against your eligibility for federal or California state benefits, unless your account exceeds a balance of $100,000. Once your account exceeds $100,000 your SSI would be suspended and your eligibility for California state and local means-tested programs could be at risk. Your account balance will never affect your eligibility for Medicaid/Medi-Cal.
For example, if you have $2,500 in your CalABLE account, that $2,500 does not count as an asset for purposes of determining your eligibility for federal or California public benefits programs, like SSI or Medicaid.
If you receive SSI benefits and your CalABLE account balance exceeds $100,000, your SSI benefits will be suspended (but not terminated). Once your balance drops below the maximum account balance, you can notify the Social Security Administration to have your SSI benefits resume, and you may resume making contributions to your account.
In addition, money you withdraw and use for housing expenses may affect your SSI benefits if you do not spend it right away. To avoid any impact to your SSI benefits, be sure to spend housing money within the same calendar month that you withdraw it. For example, if you withdraw $500 from your CalABLE account on January 3rd for rent, you must pay that rent money by January 31st. As long as you do not hold housing funds over from one calendar month to the next, they will not affect your SSI benefits.
CalABLE Account Setup
How do I open an account?
CalABLE allows participants to easily establish and maintain their accounts online. To open an account, please visit www.CalABLE.ca.gov and click on "Open an Account." Once your account is open, you can manage it (for example, update your contact information, make a contribution, check your balance or request a withdrawal) by logging into your account on www.CalABLE.ca.gov.
What are the fees for a CalABLE account?
CalABLE accounts have a low annual flat fee of $37. In addition, there is a State Administrative Fee, as well as low fees on the underlying investment options. Additional fees include the following:
- $10 per year if you choose to receive paper statements/mail document delivery.
- $20 if your electronic funds transfer is rejected or if your check bounces.
- $5 for each time you request a check withdrawal.
Is there a minimum amount required to open an account?
There is a minimum contribution amount of $25 to open a CalABLE account. Subsequent contributions minimums are also $25.
Are there limits on how much I can contribute to a CalABLE account?
Currently, the maximum Annual Contribution Limit is $15,000. This amount is subject to change periodically based on the annual federal gift tax limit, which is currently $15,000.
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 $12,490 ($15,600 for Alaska and $14,380 for Hawaii).
The maximum balance allowed for a CalABLE account is $529,000, but you should consider the impact to your disability benefits. Once your account balance exceeds $100,000, your SSI would be suspended and your eligibility for California state and local means-tested programs could be affected. However, your account balance will never affect your eligibility for Medicaid/Medi-Cal.
CalABLE Visa® Prepaid Card
What is a CalABLE Visa Prepaid Card?
The CalABLE Visa Prepaid Card is issued by MetaBank®, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. The CalABLE Visa Prepaid Card is an optional, reloadable, prepaid card you load with available funds from your CalABLE account. The card does not pull directly from your CalABLE account. You decide how much money you want to load on the card for use everywhere Visa debit cards are accepted. You can request the card during the enrollment process or afterwards by accessing your CalABLE account online. For more information, including applicable fees, please see the CalABLE Cardholder Agreement at CalABLEcard.com.
How do I contact customer support for my CalABLE Visa Prepaid Card?
CUSTOMER SERVICE CONTACT INFORMATION:
Phone Number: 1-888-853-5316
Address: Card Holder Services
P.O. Box 7244
Sioux Falls, SD 57117-7244
How do I request a CalABLE Visa Prepaid Card?
You can request a CalABLE Visa Prepaid Card at the time of enrollment or anytime afterwards by logging into your account and selecting “Prepaid Card Request” from the Profile tab.
How do I activate my CalABLE Visa Prepaid Card?
After you receive your CalABLE Visa Prepaid Card you must activate it online at CalABLEcard.com.
How do I report a lost or stolen card?
Please visit CalABLEcard.com or call 1-888-853-5316.
What are the customer service business hours?
Our customer service hours are Monday through Friday, 9 AM to 6 PM PST.
What fees are associated with the CalABLE card?
Please see the CalABLE Cardholder Agreement at CalABLEcard.com.
Is there a maximum daily deposit amount?
Yes. You can load your card up to a max of three (3) times in a 24-hour period. The maximum balance you can have, at any one time, on your CalABLE Visa Prepaid Card is $9,999.99.
Is there a maximum daily card account balance?
Yes. The maximum balance you can have, at any one time, on your CalABLE Visa Prepaid Card is $9,999.99.
Is there a maximum daily card purchase amount?
Yes. The daily maximum purchase amount is $2,500 per day.
Can an ALR request multiple cards for multiple beneficiaries?
Yes. An ALR can request a card for each CalABLE account on which they serve as an ALR.
How do I obtain more information about the CalABLE Visa Prepaid Card?
You can receive more information by visiting CalABLEcard.com or by calling 1-888-853-5316.
How do I load funds into my CalABLE Visa Prepaid Card?
You can load funds onto your CalABLE Visa Prepaid Card by logging into your CalABLE account at CalABLE.ca.gov and requesting an ACH withdrawal, and then selecting “CALABLE CARD” as the target account. Funds will be available on your card within 3 to 5 business days from the date of the withdrawal.
Can the ALR and Beneficiary have separate CalABLE Visa Prepaid Cards with separate balances on each card?
No. The ALR and Beneficiary may both have cards; however, the amount on the card account is shared between the two cards.
If there’s a change in ALR on a CalABLE account what will happen to the existing CalABLE Visa Prepaid Card issued to previous ALR?
Once a change in ALR is completed, there will be no further loading permitted to the CalABLE Visa Prepaid Card issued to the previous ALR. The card issued to the previous ALR and Beneficiary (if applicable) will remain active and available for use until the balance on the card is reduced to zero.
If the ALR changes on my CalABLE account do I need to request a new CalABLE Visa Prepaid Card?
Yes. When a new ALR is appointed, you must request a new CalABLE Visa Prepaid Card for both the ALR and the Beneficiary, if applicable.
Manage Your CalABLE Account
Where do I go to log into my CalABLE account
How do I add money to my account?
Contributions can be made online to your account at www.CalABLE.ca.gov.
Who can contribute money to my account?
Anyone can contribute to your CalABLE account -- you, your friends, your family, business, employer, trust or a corporation.
Can I roll over a 529 college savings plan into my CalABLE account?
You can roll over amounts from a 529 college savings plan into your CalABLE account tax-free. These rollovers are free from federal tax; however, they are currently subject to state income tax and an additional 2.5% California tax (CalABLE hopes to pursue tax conformity legislation to eliminate these state tax consequences). Keep in mind that 529 rollovers count as part of your annual $15,000 contribution limit. In addition, the IRS allows for one ABLE Program to ABLE Program transfer every 12 months.
How do I withdraw money from my account?
Simply log into your CalABLE account online and request a withdrawal. The withdrawal can be sent to your bank electronically, loaded onto your CalABLE Prepaid Card, or you can request a check be sent to you for a small fee. Through the check option, participants can request a check payable to themselves or a third party to pay bills or other Qualified Disability Expenses.
How can my family and friends contribute to my account?
We offer a gifting tool which allows you to ask friends and family for gifts on holidays, special occasions or to help you reach a financial goal. All you have to do is create an eGift event at any time. We will send out an email with a unique link and a personalized message, instructing recipients on how to make an online contribution. The email can be sent to as many friends and family as you like.
Check contributions will also be accepted.
- Make check payable to CalABLE and mail to:
P.O. Box 44309,
Jacksonville, FL 32231
- Include the beneficiary name and account number to which the contribution should be applied.
What if I use my account for a Non-Qualified Expense?
You may have to pay income taxes, plus a 10% additional federal tax and a 2.5% California state tax on the earnings portion of any withdrawal not used for QDEs. Additionally, the non-qualified funds you withdraw may be counted against you for purposes of determining your eligibility for public benefits programs like Supplemental Security Income (SSI).