Sometimes having a large amount of money can be just as overwhelming as not having enough, especially for people who receive a means tested benefits that could impact eligibility for important resources, like health care. Some examples of large windfalls could include, being paid back by SSI or SSDI, receiving a large income tax refund, or a family inheritance. Using your CalABLE account is a helpful tool to manage this type of unexpected income. Remember that you can contribute up to $15,000 in unearned contributions per year and save up to 100,000 without impacting means tested benefits.
If you’ve received more than that amount, there are other great options that can be used with your CalABLE account, like a Special Needs or Pooled Trust and local resources to help you navigate these choices.
Tip: If you are a SSI or Medicaid recipient, open your CalABLE account prior to the month the anticipated windfall may occur so you have time to deposit the funds in your account before the 1st of the month. If the CalABLE account is opened this calendar year, the allowable contribution will be $15,000 minus the amount you deposited in the CalABLE account, when you opened the account.
- Create a spending plan to help you manage your money to make the most of it.
- Find a local Special Needs Attorney to help you navigate managing a Special needs and/or Pooled Trust account alongside your CalABLE account.