The California Department of Social Services has issued instructions regarding treatment of ABLE accounts for purposes of CalWORKs and CalFresh. An ABLE account allows persons with disabilities to save and invest money for disability-related expenses without losing eligibility for certain benefits programs. ABLE accounts cannot exceed $100,000 and the maximum annual contribution is $14,000.
CalWORKs recipients can reduce their unearned income from Social Security Disability or other disability benefits buy making contributions to an ABLE account. Money in, contributions to and any distribution up to $100,000 for qualified expenses from an ABLE account does not count toward determining eligibility for any state or local means-tested program, including CalWORKs.
ABLE accounts are excluded as both income and resources for CalFresh.
Counties are strongly encouraged to inform eligible CalWORKs and CalFresh applicants and recipients with disabilities that they can retain an ABLE account so they do not need to spend down their savings to be eligible. (ACL 17-61, June 27, 2017.)