California
Program Name:
CalABLE (click to open an account) Phone: 1.833.225.2253
Status: Open for Enrollment
State Program Manager: Vestwell State Savings, LLC effective August 21, 2023
State Account Limit: $529,000
Accepts Out Of State Residents: Yes
Annual Contribution Limit: $18,000 (This limit is a Federal limit that is required of all states and does not include additional ABLE to Work contributions.)
ABLE To Work Act Contribution: An Account Owner who is employed and who is not contributing to a defined contribution plan, an annuity contract or an eligible deferred compensation plan may contribute additional money to his or her ABLE Account. The additional amount that may be contributed is an amount equal to the Account Owner’s employment income or equal to the poverty line for a one-person household for the prior calendar year, whichever amount is the less. This is up to $14,580 for residents of the continental U.S.; $18,210 for residents of Alaska and $16,770 for residents of Hawaii.
Program Banking Institution: BNY Mellon
Number Investment Options: 8
Program Investment Institution(s): Vanguard, Fidelity, Schwab, BNY Mellon
Debit Card Or Prepaid Card: Yes
Withdrawal Hold Rules: Yes.
Contributions made to your account by the Account Owner or Authorized Legal Representative are subject to a 5-day hold. Contributions made by third parties may be subject to a 10-day hold. Additionally, a change in mailing address will result in a 15 day hold before a check withdrawal can be made to the updated address. A change in bank account will result in a 10 day hold before an ACH can be made to that bank account. For ACH withdrawals, you will typically receive the funds within two to five Business Days after CalABLE processes the request. For a check withdrawal request, you will typically receive the check within seven to ten Business Days after CalABLE processes the request. However, those time frames are not guaranteed, and various circumstances may cause your receipt of the funds or the check to be delayed.
Medicaid Estate Recovery Status: California law prevents Medi-Cal from seeking reimbursement from the CalABLE accounts of California residents, unless otherwise required by federal law.
State Income Tax Deduction: No.
FDIC Insured: Yes. Investments in the FDIC-Insured Portfolio are FDIC insured up to $250,000, subject to certain FDIC limits and restrictions.
ABLE Legislation:
Assembly Bill 449 (2015) implements the federal ABLE Act in California
*AB-339 Qualified ABLE Program: age limit (Irwin)*AB-339 Qualified ABLE Program: age limit (Irwin)
Account Disclosure Document(s):Please See Plan Disclosure Document
Does your plan allow for proper account titling for a representative payee?
Yes
• (Beneficiary’s name) by (your name), representative payee.
• (Your name), representative payee for (beneficiary’s name).
What is your plan’s policy regarding payment of funeral / burial expenses as a qualified disability expense (QDE) prior to account freeze: When CalABLE is notified of a Beneficiary’s death, CalABLE will request satisfactory proof of death and documentation from the executor or administrator of the Beneficiary’s estate. Upon receipt of such proof of death, CalABLE will suspend all Account activity, except that the executor or administrator of the Beneficiary’s estate will be permitted to take withdrawals from the Account. Please note that the balance of an Account after a Beneficiary’s death may be subject to claims by states under their Medicaid recapture guidelines. An executor or administrator of a Beneficiary’s estate should consult with qualified tax and legal advisors regarding the tax treatment of such withdrawals and the potential for Medicaid/Medi-Cal recapture by Medicaid/Medi-Cal or other states.
Program at a Glance
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Is there an initial minimum contribution requirement to open an ABLE account? If so, how much?
Yes. $25. -
Is there a required minimum contribution to your account? If so, what is the amount?
Yes. $1. -
Is there an annual set fee to maintain the account? If so, how much?
Yes. $30 per year withdrawn in 4 quarterly installments. -
Are there fees or restrictions to the number of disbursement you are allowed? If so, what are they?
No. No. There are no restrictions on the number of withdrawals that can be taken. There are no fees with withdrawals taken by check or ACH. -
Is there a “debit card/purchasing card” available with the program? If so, what is the added cost?
Yes. $1.50 per month (currently waived) -
Can I roll over my ABLE account to another ABLE program? If so, what is the fee to do so?
Yes. $0. - Fee Range
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Annual Maintenance Fee:
$30 per year withdrawn in 4 quarterly installments. -
Check Fee:
$0 -
Debit Card Fee:
$1.50 per month (currently waived) -
Investment Option Fee Range:
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Statement Fee:
Accounts holders that elect to receive CalABLE documents by mail will be subject to an annual $10 Print and Paper Mail Delivery Fee -
ABLE Account Transfer Fee:
$0 -
Withdrawal Transaction Fee:
There is no charge for withdrawals.
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Annual Maintenance Fee:
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Are there other characteristics unique to your program?
– Entity Enrollments and online Entity Account Management
– Unique gifting solution that allows family and friends to contribution via ACH, Debit Card, and Checks
– Direct Deposit of SSA Benefits or PayrollDescription of plan’s Recertification of ABLE Eligibility Policy: If an account owner is no longer eligible for their CalABLE Account, they simply have to notify the Program of this change.
Does your plan allow for different Levels of Control for who manages spending and investments from the ABLE account? Yes, the CalABLE True Link Cards offer different levels of spending on qualified disability expenses for the ABLE account owner and authorized legal representative.
Where can I find the ABLE Plan’s investment performance information? http://calable.ca.gov/historical-performance
Description of plan’s Recertification of ABLE Eligibility Policy. If an account owner is no longer eligible for their CalABLE Account, they simply have to notify the Program of this change.