Maximizing Your Child’s Future: The Benefits of a CalABLE Account
Written by Robert Nickerson
With the many parents I meet with, I get asked a lot about their special needs child and their financial situation. They want to be able to provide funds without it risking their eligibility for disability (state or federal) or Medicaid. This also applies if their child (or any loved one with special needs) receives SSI (or supplemental security income) and they don’t want to potentially put too much money.
I know it can sound stupid when were told “you can’t put too much money into your special needs child’s account”. We want to be able to provide what’s best for them. We especially want to help create a path to their own independence without having to ask too many questions.
This is why I refer families with special needs children to CalABLE accounts.
But what is a CalABLE account? It’s a California state program that allows those that are disabled (or guardians acting for their beneficiaries) to open an account as a way to save money. It was created as a way to provide more power and independence to those that are disabled.
What can it be spent on? CalABLE accounts can be used for a lot of things as long as they are “qualified expenses” What are those? You’ll be happy to know that there are a lot of things that fall under this term. Som of the following include,
- Education (tuition for school, computers or other tech for assistance, books, and supplies)
- Housing (rent, mortgage payments, property taxes and even utility charges)
- Transportation (purchase of a vehicle, mass transit cars, and taxi or rideshare expenses)
- Health and wellness (premiums for health insurance, long term services, personal assistance and respite care)
I’ll provide the link to the page that goes into more detail about other “qualifying expenses”. CalABLE Benefits
There are a lot of benefits to having a CalABLE account. Some include,
- Both the earnings from your CalABLE account and withdrawals used to pay for qualified expenses are TAX FREE.
- The money in your CalABLE account will not affect your eligibility for Medicaid benefits.
- California residents with a CalABLE account are protected from both creditors and repayment of medical assistance.
- There are a lot of Investment opportunities and portfolios that you can set their account up with, helping them build and save even more in the long run.
- You can even get an ABLE Visa card in which you can help provide more independence and freedom for your loved one.
I’ll also provide a link below to the CalABLE website for more information. This is a state program that not too many people know about. I care about the families I serve and want to ensure that their loved one can have a safe future. I also want to make sure families will be able to provide help without drying up their wallets.
