CAL-ABLE Accounts: Overview
ABLE Accounts: A Simple Guide (We Promise)
D.E.S.I. wants to make sure our community knows about a great opportunity to save money and not lose benefits. D.E.S.I. recommends setting up an ABLE account because we understand the needs of our clients. Our clients deserve to pursue happiness as much as anyone else. But the unfortunate truth is that people with disabilities must make about 29 percent more to have the same standard of living as people without disabilities. So we want to help level the playing field. ABLE stands for Achieving a Better Life Experience, and we believe that ABLE accounts can help our clients do exactly that.
However, even though ABLE accounts are a great idea, recent webinars and information on the web about ABLE have made ABLE seem more complicated than it is, and it honestly doesn’t need to be. So we decided to post our own guide in order to make it easier to understand.
So what Is an ABLE Account?
Think of ABLE accounts as a stress-free way to save money without losing the federal support our clients rely on. ABLE allows clients to store away extra cash without losing eligibility for federally funded benefits like SSDI and SNAP. We know how much we need those programs, but because these programs are means-tested, saving can mean losing access to them. But ABLE allows clients not to have to worry about that.
Moreover, if they decide to enroll in one of the investment plans, clients will not be taxed on any money they earn. Those tax-free dollars can be spent on everyday living expenses.
This is great news because ABLE will create sizable financial relief for our clients. That’s really important to us, which is why at D.E.S.I. we are spreading the word about ABLE.
Who Can Sign Up for an ABLE Account?
If a client’s disability started before age 46, you’re good to go. The rule used to require that the diagnosis begin before age 26 — but not to worry — that rule will no longer be in effect starting January 1, 2026. So if you didn’t qualify before, there’s a good chance you do now. If you already receive SSI or SSDI, you’re automatically eligible. No extra paperwork needed.
In our next blog, we’ll discuss how to open an ABLE account as well as the rules and regulations associated with those accounts.
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