CalABLE Savings Accounts for Individuals with DisabilitiesBy Kenton Koszdin Law Office on August 22, 2019 | In Blogs
Have you opened up your CalABLE account yet? If not, and if you are an eligible person with a disability, then you are missing out on this valuable tool that can help you build financial security.
At our office, we often get questions on ABLE accounts such eligibility criteria, what is the maximum annual contribution and whether money in this account can affect eligibility for federal benefit programs. So we have created Frequently Asked Questions (FAQs) – with answers – to address some of these issues.
CalABLE Accounts Frequently Asked Questions
What is a CalABLE account? An ABLE account is a tax-advantaged savings account created by Congress so that qualified individuals with disabilities can save money to assist with their disability. CalABLE is the California version of ABLE accounts which stand for Achieving a Better Life Experience.
Am I eligible to start a CalAble account? To be eligible, you must have a disability that began before age 26 and you must have “marked and severe functional limitations” – in other words, be eligible for Social Security Disability (SSDI) benefits. If you are not receiving SSDI or Supplemental Security Income (SSI) payments, a doctor can certify your disability.
Who can contribute to my CalABLE account? The account beneficiary can deposit money into the account as can family and friends.
What is the maximum amount that can be deposited into the account? Generally, the total annual contribution to an account is $15,000. There are some exclusions for those who work under the ABLE to Work Act.
How can the money in a CalABLE account be used? These funds must be used for qualified disability expenses, or those costs incurred by the account beneficiary because of living with a disability. Examples include health care expenses, education, housing, transportation, training and assistive technology.
Will my CalABLE account affect my eligibility for federal plans, Medicaid and other means-based programs? Generally no, and that is the beauty of an ABLE account. Your benefits will not be affected up to $100,000 in your account. If the account balance exceeds $100,000, Medicaid will remain intact but SSI benefits will be indefinitely suspended. However, guidance for other programs such as housing benefits and supplemental nutrition has not yet been issued.
A CalABLE account can be of real financial help to an individual with a disability. Read more about CalABLE accounts here.
Let Us Know If You Need Help with a Social Security Disability Claim Denial
If you or a loved one has been denied Worker’s Compensation or Social Security Disability (SSD) benefits, it’s important to get an attorney experienced in these types of cases involved immediately. Call our Los Angeles County office at 800.438.7734 for your initial free consultation, either in our office or in the comfort of your own home. The Kenton Koszdin Law Office, Social Security attorney in Van Nuys, can help you navigate the application process for the best possible outcome for you and your family.