CalABLE Account California

The Problem CalABLE Solves

SSI has a $2,000 individual resource limit. Medi-Cal reinstated asset limits of $130,000 in 2026, dropping to $21,000 in July 2027. For adults with disabilities who want to save money — or whose families want to help them build financial security — these limits create a trap. Every dollar saved beyond the threshold risks losing benefits worth far more than the savings.

CalABLE accounts break this trap. Up to $100,000 in a CalABLE account is completely excluded from the SSI resource count. The money is there, it belongs to the account holder, and the SSA doesn't count it against the $2,000 limit.

2026 Contribution Limits

The standard annual contribution limit is $20,000. Anyone can contribute — the account holder, parents, grandparents, friends — as long as total contributions from all sources don't exceed $20,000 in a calendar year.

Working account holders who don't participate in an employer-sponsored retirement plan can contribute an additional amount under the ABLE to Work provision: the lesser of their current-year gross wages or $15,650 in 2026. That means a working CalABLE account holder could contribute up to $35,650 in a single year.

One important clarification: the $100,000 SSI resource exclusion is a balance threshold, not a contribution cap. You can contribute $20,000 per year indefinitely. When the account balance exceeds $100,000, the excess starts counting against the SSI resource limit, but only the amount above $100,000 — not the entire account. Medi-Cal has no balance cap on CalABLE exclusions under current California rules, so even a balance above $100,000 doesn't jeopardize Medi-Cal.

Who's Eligible

To open a CalABLE account, the individual must have a qualifying disability with onset before age 46. The ABLE Age Expansion Act raised this threshold from age 26 to age 46 effective January 1, 2026, dramatically expanding access to adults with conditions that developed after childhood.

Qualifying disability means either: the individual receives SSI or SSDI, or a licensed physician certifies that the individual meets Social Security's disability criteria. You don't need to be receiving benefits — just meet the medical standard.

Each person can have only one ABLE account nationwide. If you open a CalABLE account in California, you can't also have an account in another state's program.

CalABLE vs. Special Needs Trust

Both protect assets without jeopardizing benefits, but they work differently:

CalABLE advantages: The account holder (or their representative) controls the money directly. Contributions are simple — transfer money in like any savings account. Withdrawals for qualified disability expenses (housing, transportation, health, employment support, assistive technology) are tax-free. No attorney fees to set up. No trustee required. No court oversight.

Special Needs Trust advantages: No annual contribution limit. No balance cap for SSI purposes (a properly drafted trust is completely excluded from the resource count regardless of balance). Can hold real estate, life insurance proceeds, and other complex assets. Can be funded by a personal injury settlement or inheritance. First-party trusts require a Medicaid payback provision at death; third-party trusts don't.

When to use which: CalABLE is the right tool for regular savings and modest accumulations — the kind of money families contribute monthly or that comes from employment earnings. A Special Needs Trust is the right tool for large lump sums — an inheritance, a personal injury settlement, life insurance proceeds — where the annual contribution limits and the $100,000 SSI exclusion cap would be too restrictive.

Many families use both: a Special Needs Trust holds the large assets, and a CalABLE account handles ongoing savings and spending money with maximum flexibility.

Trump Account Rollovers

Trump Accounts, launching July 4, 2026 under the One Big Beautiful Bill Act of 2025, are custodial-style traditional IRAs for children under 18. They allow up to $5,000 in annual contributions with no earned income requirement, and children born between 2025 and 2028 receive a $1,000 federal seed contribution.

During the growth period through age 17, the entire account balance is excluded from SSI resource limits. No withdrawals are permitted before age 18.

The disability intersection: in the calendar year a child turns 17, if they have a diagnosed disability, the entire Trump Account balance can be rolled over tax-free into a CalABLE account. This preserves the SSI resource exclusion before the child hits the age-18 adult redetermination. Without the rollover, the Trump Account funds could push a young adult over the $2,000 SSI resource limit right when they're being evaluated under the adult standard.

One critical rule: parents must not deposit SSI checks into a Trump Account. SSI funds are legally required to meet the child's current needs, and diverting them into a savings vehicle could constitute misuse of benefits.

What Counts as a Qualified Expense

CalABLE withdrawals are tax-free when used for qualified disability expenses, which are broadly defined:

• Education (tuition, books, tutoring)
• Housing (rent, mortgage, utilities, property taxes)
• Transportation (vehicle purchase, maintenance, public transit, rideshare)
• Employment support (job coaching, workplace modifications, uniforms)
• Health and wellness (medical expenses, dental, mental health, gym memberships)
• Assistive technology (adaptive equipment, software, home modifications)
• Financial management (accounting, legal services)
• Basic living expenses (food, clothing)

Housing expenses are a special case for SSI: housing-related CalABLE distributions should be spent in the same calendar month they are withdrawn; otherwise the unspent amount may be treated as a countable resource by the SSA.

For the complete strategy integrating CalABLE with SSI asset planning, Medi-Cal renewals, and the 2027 asset cliff, see our California SSI at 18 & Adult Disability Benefits Guide.

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