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People who rely on SSI often worry that saving money—for education, disability-related costs, or even a small emergency fund—could jeopardize their benefits due to strict resource limits. CalABLE accounts offer a powerful solution, allowing SSI recipients to save and invest for their future while protecting their eligibility for essential benefits.
What Is a CalABLE Account?
CalABLE accounts are California’s version of the federal ABLE (Achieving a Better Life Experience) program. CalABLE accounts enable some people with disabilities to save money without jeopardizing their SSI or other means-tested government benefits.
You may be eligible for a CalABLE account if you meet the following criteria:
- You are legally blind or have a physical or mental disability that causes significant functional limitations. The condition must have started before age 26 and last (or be expected to last) at least one year. (Starting January 2026, people whose disability began before age 46 will also qualify.)
- You have a Social Security number or a tax identification number.
- You live in the United States and have a permanent street address (P.O. boxes don’t count).
- You either receive SSI or SSDI, meet the Social Security Act’s definition of blindness, or have a disability listed in the Social Security Administration’s Blue Book or Compassionate Allowance Conditions.
CalABLE accounts allow individuals to save up to $18,000 per year (potentially more if employed), which does not affect an individual’s eligibility for means-tested benefits. Assets in a CalABLE account can grow tax-free if used for qualified disability expenses, such as housing, education, healthcare, assistive technology, or transportation.
How CalABLE Protects Your SSI Benefits
Under the SSI program, an individual may only have up to $2,000 in countable assets ($3,000 for married couples). Countable assets can include savings accounts. However, money saved in a CalABLE account, up to a maximum of $100,000, does not count toward an individual’s countable assets for SSI eligibility.
CalABLE accounts allow individuals who receive SSI benefits to save money for financial emergencies, education, or to pay for goods or services that improve an individual’s quality of life, without risking the person’s eligibility for SSI.
Even when the balance in a CalABLE account exceeds $100,000, the Social Security Administration will only suspend the person’s SSI benefits. Payments can resume once the balance in their CalABLE account dips below $100,000.
Contribution, Withdrawal, and Spending Rules
Using CalABLE accounts requires following various rules regarding contributions, withdrawals, and spending of saved assets, including:
- Eligible contributors: The account owner may contribute funds to their account by setting up direct deposits of SSI benefits or paychecks from employment. An account owner’s family members or friends may also make gifts to the account.
- Annual contribution limits: Account holders may save up to $18,000 per year in a CalABLE account. However, the ABLE to Work program allows employed account holders to deposit an additional $15,060 from their wages.
- Eligible withdrawals and spending: An account holder may only withdraw funds from the account tax-free for qualified disability expenses, such as housing costs, medical bills, transportation expenses, education, or job training.
- Non-qualified withdrawals: Non-qualified withdrawals from an account may constitute countable income, which can reduce or pause an account holder’s SSI benefits
CalABLE vs. Other Saving Options
Saving money in regular bank accounts will count toward resource limits, potentially jeopardizing SSI eligibility, whereas CalABLE accounts can exempt a significant amount of savings from counting toward eligibility limits.
Special needs trusts also enable people with disabilities to protect their assets while maintaining their eligibility for SSI. However, setting up and operating a special needs trust can involve higher complexity and costs compared to CalABLE accounts, which operate more like traditional bank accounts.
Contact an SSI Lawyer Today
If you rely on SSI, a CalABLE account can be a powerful way to protect your benefits while giving yourself more financial flexibility and peace of mind. If you’d like to explore how a CalABLE account could help you, reach out to Disability Advocates Group. We offer free, no-obligation consultations with an SSI lawyer who can walk you through your options and answer your questions.
