As the year comes to a close, individuals with disabilities and their loved ones are encouraged to take advantage of the economic and tax benefits of opening and contributing this holiday season to CalABLE, a savings and investment plan offered by the state of California to individuals with a disability.
Eligible individuals, family, friends, and employers can contribute up to $15,000 a year without affecting the beneficiary’s public disability benefits. Eligible working adults with a disability can contribute even more to their accounts. Best of all, earnings on qualified withdrawals from a CalABLE account are federal and California tax-free.
With Californians facing challenging economic times and pandemic-rooted concerns, CalABLE offers eligible people with disabilities a way to save for the future – with no impact on their federal and California state benefits.
“CalABLE is a great program to create financial equity for people with disabilities,” says State Treasurer Fiona Ma, who chairs the CalABLE Act Board. “During these challenging times, it is a wonderful and meaningful way to give back this holiday season to those in our community who need our support.”
“CalABLE has always been a great way for individuals with disabilities – and their friends and family members – to prepare for their futures, but the economic and public health challenges of 2020 have made it more important than ever before,” said Dante Allen, executive director of CalABLE. “Contributing to a loved one’s CalABLE account this holiday season can help them with important expenses down the line – whether it’s buying a home, paying for tuition or purchasing adaptive equipment.”
Savings in a CalABLE account can be used for many different disability-related expenses ranging from education, employment support, housing, transportation, assistive technology, and healthcare. Friends and family can contribute directly to a CalABLE account via an E-Gift event that may be set up by the CalABLE account holder.
To learn more about CalABLE or to open an account today, go to CalABLE.ca.gov. CalABLE
