CalABLE Accounts Coming This Summer

This coming summer ABLE accounts will be available in California. In 2015 Governor Brown signed the California ABLE Act into law. CalABLE allows qualified individuals with disabilities and their families to open tax-free savings accounts without the worry of losing vital government assistance. The law establishes a board that will administer the CalABLE savings program. The CalABLE program in California will open up life-improving opportunities for people with disabilities and their families in much the same way California’s ScholarShare 529 plans formed educational opportunities for the state’s students. Contributions to an ABLE account, currently limited to $14,000 per year, can be made by family, friends, or the beneficiary themselves. The account’s earnings are allowed to accumulate tax-free, and the withdrawals, provided they are applied to qualifying disability expenses, are tax-free. Read more about the CalABLE program by accessing this fact sheet.