CalABLE: Improving Life for Californians with Disabilities
The federal Achieving a Better Life Experience (ABLE) Act provides an important tool for people with disabilities to achieve a greater degree of financial independence. Recognizing the special financial challenges families face over a lifetime raising children with disabilities, the federal ABLE Act of 2014 added to the Internal Revenue Code rules under which states or state agencies may establish a tax-favored savings and investment program to provide secure funding for disability-related expenses while maintaining eligibility for vital public assistance.
An individual must have less than $2,000 in countable resources to qualify for Supplemental Security Income (SSI). Up to $100,000 in an ABLE account now is excluded from consideration for means-tested federal programs, meaning a person with a disability can have up to $100,000 set aside in an ABLE account for future care needs without running into an asset-test barrier that excludes them from receiving SSI. (If an ABLE account balance were to exceed $100,000, the beneficiary’s SSI benefits would be suspended until the balance drops below the $100,000 threshold.) Continue reading..