.Purpose

Policy

Background

Release Date:

2/13/2019

Definitions

Requirements

Verification Docs

Term

Definition

Designated beneficiary

The designated beneficiary is the ABLE/CalALBE account owner.

Account funds

The account funds, which includes contributions, money in the account, dividends and interests.

Requirement

Limit/Condition

Eligible individuals

Eligible individuals can only have one ABLE/CalABLE account.  Individuals are eligible for an ABLE/CalABLE account if:

a)   They are eligible for, or currently receiving, Social Security Income (SSI) or Social Security Disability Insurance (SSDI) benefits as a result of a disability which occurred before the age of 26; or 

Note:  The eligible individuals must have a disability that is expected to last for at least one year.

b)   They or their parent/guardian provide a “disability  certification” of the individuals’ disability, which occurred before the age of 26 along with a copy of a physician’s signed diagnosis.   

Qualified Disability Expenses (QDEs)

Funds from ABLE/CalABLE accounts can be withdrawn to pay for QDEs and for the benefits of the designated beneficiary.  The QDEs include, but are not limited to the following:

a)   Medical.

b)   Education:

1.    Tuition for preschool through post-secondary education;

2.    Books; and

3.    Supplies and educational materials.

c)   Housing:

1.    Home improvement, modifications, maintenance and repairs;

2.    Expenses for a primary residence;

3.    Rent;

4.    Purchase of a primary residence;

Qualified disability Expenses (QDEs)

5.    Mortgage payments;

6.    Real property taxes; and

7.    Utility charges.

d)   Transportation:

1.    Use of mass transit;

2.    Purchase or modification of vehicles; and

3.    Moving expenses.

e)   Employment training and support:

1.    Expenses related to obtaining and maintaining employment; and

2.    Job-related training.

f)   Assistive technology and personal support services:

1.    Expenses for technology devices and personal support that help people with disabilities carry out daily activities (e.g., a smart phone for a child with autism).

g)   Health, prevention and wellness:

1.    Premiums for health insurance;

2.    Mental health, medical, vision, and dental expenses;

3.    Habilitation and rehabilitation services;

4.    Medical equipment;

5.    Therapy;

6.    Respite care;

7.    Long-term services and devices;

8.    Nutritional management;

9.    Communication services and devices;

10.  Adaptive equipment; and

11.  Personal assistance.

h)   Financial management and administrative services.

i)    Legal services.

j)    Funeral and burial expenses.

k)    Expenses for oversight and monitorings.

 l)  Other expenses.

Money in the ABLE/CalABLE accounts

The money in the ABLE/CalABLE accounts is exempt as a resource/income for CalFresh eligibility.  Follow existing policy to screen for expedited services found in BWS Administrative Release (AR) 63-301.5, dated October 30, 2017.

Contributions to the ABLE/CalABLE accounts

The contributions are exempt as a resource/income for CalFresh eligibility.

A contribution is the payment of funds into an ABLE/CalABLE account.  Contributions can be made in the form of cash or a check, money order, credit card, electronic transfer, or a similar method. 

Contributions to the ABLE/CalABLE accounts

Any person can contribute to an ABLE/CalABLE account.

Note:  Funds contributed to the ABLE/CalABLE account can be made by family, friends, or the ABLE/CalABLE designated beneficiaries themselves.  “Person,” as defined by the Internal Revenue Codes, include an individual, trust, estate, partnership, association, company, or corporation.

Dividends paid from/accrued interest in the ABLE/CalABLE accounts

The interest is exempt as a resource/income for CalFresh eligibility.

Withdrawals/

distributions from

the ABLE/CalABLE accounts

The qualified withdrawals/distributions, pay for QDEs and for the benefits of the designated beneficiary, are exempt as a resource/income for CalFresh eligibility.

Annual ABLE/CalABLE contribution limit

In 2018, the contributions to the ABLE/CalABLE accounts are limited to $15,000.

Maximum amount an eligible individual can have in a CalABLE account

Eligible California residents with disabilities can open an ABLE account in any State offering a national plan or a CalABLE account in California and to save up to $475,000 in tax-exempt assets.  ABLE/CalABLE participants receiving SSI or SSDI have a $100,000 limit. 

Requirement

Limit/Condition

Elderly and/or disabled HHs

Any NACF HHs in which there is at least one elderly or disabled member and their gross income is above 200% Federal Poverty Level (FPL) income limit.  The gross income test is not applied to these HHs and only the net income test is applied. 

Non-Categorical Eligibility HHs

HHs are not eligible for Modified Categorical Eligibility (MCE) and are; therefore, subject to all CalFresh eligibility requirements, including the resource limit and the gross income limit based on 130% of the FPL include the following:

a)   A HH with a disqualified member such as an Intentional Program Violator (IPV), or a Fleeing Felon or Probation/Parole Violator; or

b)   A HH, in which the head of HH does not comply with work requirements.

Note: A HH may be conferred MCE status once it is determined the sanction period has expired and the HH meets all other conditions of MCE eligibility.
AR 5241 Suppl. I, 63-301.74 Modified Categorical Eligibility, dated April 12, 2016 provides the policies and procedures on MCE.

Category

Acceptable Documents

Documentation and verification of ABLE/CalABLE accounts/account funds

ABLE/CalABLE accounts must be verified via third-party documentation and any discrepancies cleared and/or verified with the eligible NACF individuals with disabilities.

Note:  The ABCDM 228, Applicant’s Authorization of Release   of Information must be signed and submitted with the request for a third-party documentation regarding the ABLE/CalABLE account verification.

Documentation and verification of contributions, dividends and interests to ABLE/CalABLE accounts

The eligible NACF HHs are encouraged that the individuals should keep good records on the contributions, dividends, and interests related to their ABLE/CalABLE accounts.

Documentation and verification of ABLE/CalABLE withdrawals/ distributions for QDEs

It is the responsibility of the eligible NACF individuals with disabilities with the ABLE/CalABLE accounts to ensure that account withdrawals/distributions meet the criteria for QDEs.  It is encouraged that the individuals should keep good records on any activities related to their ABLE/CalABLE accounts.