0981 California ABLE Act Board
0895 - CALIFORNIA ABLE ACT BOARD
On December 19, 2014, President Obama signed the Stephen Beck Jr., Achieving a Better Life Experience Act of 2014 (the ABLE Act), which allows individuals who became blind or disabled before reaching age 26, to create tax-free savings accounts. Individuals can make nondeductible cash contributions to an ABLE account in the name of a specified beneficiary with tax-free earnings. ABLE account distributions are also not included in the beneficiary's income, as long as they are used for qualified services. Chapter 774, Statutes of 2015 (AB 449), implements the ABLE Act in California, and directs the State Treasurer to administer ABLE accounts on behalf of qualified Californians.
The California Achieving a Better Life Experience Act Board and the California ABLE Program Trust were established by Chapter 796, Statutes of 2015 (SB 324), for the purpose of creating a statewide program known as the Qualified ABLE Program (the Program). Under the Program, a person may make contributions of up to $100,000 for a taxable year, for the benefit of an individual who is an eligible individual for that taxable year, to an ABLE account that is established for the purpose of meeting the qualified expenses of the designated beneficiary of the account.