ABLE accounts are state established programs authorized under Federal tax law. Legislation (SB 324) was passed by the California legislature and signed by the governor establishing the CalABLE program (new R&TC Section 17140.4). CalABLE accounts are effective January 1, 2016.

AB 91 (signed by the governor 6/27/2019) generally conforms CA law to the changes relating to qualified ABLE accounts made by the TCJA and the Consolidated Appropriations Act of 2016. Thus, California conforms to the TCJA provision allowing ABLE account beneficiaries to contribute their own earnings, up to an amount equal to the federal poverty level amount, to their own account.

However, AB91 does not provide for a tax-free rollover from a 529 plan to an ABLE account.

The CalABLE website is: https://calable.ca.gov/

Caution: CA does not conformed to the federal SECURE 2.0 Act increasing the age limit for when an eligible individual’s blindness or disability occurred from 26 to 46 until January 1, 2026. AB 339 has been introduced to conform CA to the age 46.