May 2024 Spotlight on
Social Security Newsletter

The Department of Rehabilitation (DOR) Spotlight on Social Security Newsletter brings exciting news, work incentives information, success stories, and other valuable information for beneficiaries receiving Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), their families, and the professionals that serve them.

In this issue:

Upcoming Spotlight on Social Security Webinar: Secure Your Future: Discover the Benefits of ABLE Accounts

DOR offers webinars, provided by industry experts who share valuable information and resources for beneficiaries of SSI and/or SSDI.

Don’t miss out! Go to our 2024 Webinar Calendar to register for future webinars!

This month's webinar:

Title: Secure Your Future: Discover the Benefits of ABLE Accounts
Date: Thursday, May 16, 2024
Time: 10:00 A.M. - 11:30 A.M. PST
Location: Zoom
Event Information: Representatives from CalABLE will be joining us to discuss the benefits of opening a CalABLE Account and how it can help people with disabilities save for the future.

Submit your questions about this webinar

This Month’s Featured Spotlight Article - Unlocking Financial Freedom: How ABLE Accounts Empower Individuals with Disabilities

Many individuals with disabilities and their families rely on public benefits for income, health care, food, and housing expenses. In 2014, the Achieving a Better Life Experience (ABLE) Act was signed into law. The ABLE Act allows people with disabilities to open specialized savings and investment accounts called ABLE Accounts, which are intended to help individuals with disabilities build a better financial future.

Tell me more about ABLE Accounts.

An ABLE Account is a tax advantaged savings account designed to help individuals with disabilities save and invest for the future without losing their government benefits, like Medi-Cal, SSI, and housing. Most states manage their own ABLE Account program. CalABLE is the program offered by the State of California, which offers savings and investment plans to eligible individuals with disabilities. In 2024, eligible individuals, their families and friends can contribute up to $18,000 per year, and up to $100,000 total, without affecting eligibility for public benefits, including SSI, Medi-Cal and more. CalABLE Account owners, who work, can contribute even more to their accounts. Best of all, earnings on qualified withdrawals are federal and California state tax-free when used for qualified expenses.

It is important to consult with a financial advisor or a qualified professional before making any decisions about an ABLE Account. They can help you determine what is best for your situation.

What are the benefits of an ABLE Account?

  • Save without risk of disability benefits suspension due to excess resources.
  • Invest using professionally managed investment portfolios.
  • Spend your money at any time on qualified disability expenses without taxes or penalties.
  • Set up a gifting page, anyone can contribute toward the account holder’s savings goals.
  • Third party contributions are not considered income.
  • Pay for qualified expenses using a prepaid Visa debit card.

Who is eligible to open an ABLE Account?

An "eligible individual" is someone who had a disability before the age of 26. If this is you and you receive SSI or SSDI, you are automatically eligible to open an account.

  • You can be over age 26 to open an account, but the disabling condition must have occurred before your 26th birthday.
  • If you do not receive SSI or SSDI, but still meet the age and disability requirement, you can open an account with a letter of disability certification from a licensed medical professional.

Who can contribute to an ABLE Account?

Anyone can deposit funds into an ABLE Account, including family, friends, organizations, and the account holder themselves.

Will an ABLE Account impact my SSI, Medi-Cal, or other public benefits?

You can open and maintain a CalABLE Account while keeping your federal and state benefits such as SSI, SSDI, and Medi-Cal. Money in an ABLE Account is not counted as income or a resource until it reaches an annual limit.

  • The money in an ABLE Account will not affect your Medi-Cal, CalFresh or HUD housing.
  • If you receive SSI, the first $100,000 will not be counted as a resource against the $2,000 SSI asset limit.

How can I use the money in an ABLE Account?

Money in an ABLE Account can be used to pay for expenses related to a person’s disability, these are called "Qualified Disability Expenses."

An expense is qualified if the expense:

  • Relates to your disability.
  • Helps you to maintain or improve your health, independence, or quality of life.

What are some examples of Qualified Disability Expenses?

  • Education
  • Housing and Home Improvement
  • Transportation
  • Health, Prevention and Wellness
  • Assistive Technology and Personal Support Services
  • Financial Management
  • Employment

What do I need to do to open a CalABLE Account?

When applying for your ABLE Account, be ready to provide the following information:

  • Social Security Number (SSN)
  • Date of Birth
  • Verifiable address
  • Bank account information
  • $25 minimum initial deposit

How do I open an account?

Opening an account is easy, it is all done online and takes about 15 minutes.

Interested in learning more about setting up a CalABLE Account?

Visit CalABLE’s webpage or call the CalABLE service line at 833-225-2253 (833-CAL-ABLE) from 6 am – 5 pm PT.

For more detailed information about ABLE Accounts visit the ABLE National Resource Center (ABLE NRC) website and also check out the Debunking ABLE Myths page. This website is a great starting point to learn more about ABLE Accounts.

Resources to learn more About ABLE or CalABLE Accounts

This Month’s DOR Work Incentive Planning Services Success Story

Billy is an SSI recipient who, in the past, lived with his mother and brother. He was referred to a DOR Work Incentive Planner (WIP) named Scott. Billy was interested in working but was told he would lose his SSI and Medi-Cal benefits when he started working. Scott helped Billy and his family understand the Social Security Ticket to Work program and many supports that would help him transition to work without losing his disability benefits. Scott explained that while income from work would affect the monthly SSI cash benefit, he would still receive a small SSI check, based on his expected earnings of $1,800 per month. Scott demonstrated a calculation tool that showed how Billy would have more money at the end of every month by working, and explained that Billy could earn up to $58,638 per year under a rule title 1619 (b), and still be able to keep his SSI-linked Medi-Cal benefits, as long as he continued to meet certain requirements for SSI eligibility, like resources (assets, bank accounts) under the SSI $2,000 limit and a continuing disability.

With the help of his employment team at the DOR, Billy found a job at a warehouse earning $21 per hour and is working 20 hours per week. He received on-the-job training and the support he needed to be successful. Scott provided on-going benefits planning to assure that Billy was reporting his wages accurately to Social Security and was available to provide personalized guidance when Billy had any questions about his SSI or Medi-Cal benefits and work. Scott also introduced the CalABLE Account as a savings tool for the future while keeping his SSI benefits. This newfound knowledge gave Billy and his family a sense of relief and hope for the future.

You too can work with a WIP like Scott!

  • Interested in learning about your disability benefits?
  • Are you ready to go to work?
  • Meeting with a WIP is a great way to get the facts about your Social Security Benefits.
  • Sound Interesting?

Talk to your DOR counselor to see if you are eligible for DOR WIP Services.

Not currently Receiving DOR Services?

If you are ready to start an exciting journey with DOR, please click here to Get Started. You will need to provide additional information about yourself to request services.

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