What Is an ABLE Account in California?
An ABLE account is a special savings account for people with disabilities. Money in it can be used for disability related expenses, and it generally doesn’t count against benefits like SSI and Medi-Cal. You may qualify if your disability began before age 46. California’s program is called CalABLE.
What is an ABLE account?
An ABLE account (named for the federal Achieving a Better Life Experience Act) is a special tax advantaged savings account for eligible people with disabilities. Its key feature is that money in an ABLE account doesn’t count against the asset limits for means tested benefits like SSI and Medi-Cal, up to program limits. That means a person with a disability can save for emergencies, goals, or everyday disability related expenses without jeopardizing the benefits they rely on.
California’s program is called CalABLE, though eligible residents can generally use another state’s ABLE program too.
Who qualifies?
A person can qualify for an ABLE account if their disability began before age 46. What matters is when the disability started, not when it was diagnosed. The person also has to meet Social Security’s definition of disability. If they receive SSI or SSDI based on a disability that began before age 46, that requirement is met. If they don’t receive those benefits, a physician can certify that the disability meets the definition and began before age 46. There are no income or asset limits to open an account. For people with a developmental disability, which by definition begins before age 18, the age requirement is already met.
The account belongs to the person with the disability, even if a family member or other authorized legal representative opens and manages it for them.
What can the money be used for?
ABLE funds can be spent on qualified disability expenses, a deliberately broad category that includes things like housing, education, transportation, employment support, assistive technology, and health and wellness. It’s a flexible tool for the real costs of living with a disability.
Spending on something that doesn’t qualify has consequences. The earnings are taxed and hit with a 10% penalty, and the withdrawal can affect eligibility for SSI and Medi-Cal. Housing has one extra rule for people who receive SSI: a withdrawal for housing should be spent in the same calendar month. If it’s held into the next month, it counts as a resource, which can put the person over SSI’s resource limit.
Limits to know about
ABLE accounts do have rules worth understanding:
Annual contribution limit: $20,000 in 2026, counting contributions from all sources combined. Employed account owners may be able to contribute more.
Balance limits: CalABLE accepts contributions until the balance reaches $529,000, and other state programs set their own maximums. For people who receive SSI, any amount over $100,000 counts toward SSI’s resource limit, which can suspend SSI payments until the balance drops back down.
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An ABLE account is one part of planning for an adult with a disability, alongside decisions like whether a conservatorship is needed. If you’re wondering how these pieces apply to your family, I’m happy to talk it through. I serve families throughout Marin, the greater Bay Area, and beyond.
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This article is general information and is not legal or financial advice. ABLE rules and limits change over time. Confirm current details with CalABLE or a qualified professional, and consult an attorney for guidance on your situation.
