More Californians with disabilities can now save without penalty | Opinion

When we talk about unlocking the full economic potential of the Golden State, we must mean for everyone. As of Jan. 1, hundreds of thousands more Californians with disabilities are now able to take part in that promise. That day marked an expansion of the state’s flagship savings program for individuals living with disabilities, CalABLE — the single largest increase in access since the program began.

CalABLE is a seven-year-old tax-advantaged savings and investment program for eligible individuals with disabilities in California, allowing them to save for disability-related expenses without facing the regular state tax rates or losing means-tested eligibility in government care programs. It mirrors a federal program in existence since 2014. And now more Californians can save for their own futures.

Since its inception, eligibility was limited to those whose disability began before age 26. Now, that threshold has been expanded, allowing access to Californians whose disabilities began between ages 26 and 45.

But far too few eligible Californians are aware of this vital resource.

Both of us have seen firsthand just how transformative this change will be. For years, many people living with disabilities have faced a difficult trade-off: Save for the future, or risk losing access to essential means-tested public benefits like Supplemental Security Income, which limits individuals to no more than $2,000 in savings.

Now, under the CalABLE program, account holders can finally save dollars for “qualified disability expenses” — such as health care, housing, assistive technology, job training, transportation and wellness — without jeopardizing their public benefits. This is thanks to landmark federal legislation, the ABLE Age Adjustment Act, which went into effect on Jan. 1. It raises the disability age of onset for eligibility to 46 (previously 26). This pivotal change extends the benefits of ABLE accounts to over 6 million additional individuals across the country.

Californians with disabilities who do not receive public benefits should also consider CalABLE because of its tax-advantaged status and growth opportunities. CalABLE offers eight professionally managed investment options to choose from. As long as the account is used for qualified disability expenses, earnings from those investment options is free from both state and federal taxes. This makes CalABLE an excellent vehicle for financial planning and wealth building.

With the age threshold now raised to onset before 46, many more Californians will soon qualify, including disabled veterans, people with progressive or autoimmune conditions that become disabling later in life and those who sustained injuries as adults. This change makes CalABLE more inclusive and more reflective of the reality of disability in California today.

Yet, despite the program’s immense benefits, awareness of CalABLE remains far too low, both among the existing cohort of those under the age of 27 and those who will soon become eligible. That means many people who could be saving and investing for their future may not even know this option exists.

One of us (Julienne) has lived in the disability community for nearly three decades, since waking up paralyzed and forced to rebuild a life from the ground up all while supporting two young children. Meanwhile, the other author (Thomas) has two sons have autism. Parenthood involves recognizing the challenges of planning for adulthood while navigating the strict financial limits set by benefits programs.

Together, we’ve seen that financial inclusion isn’t just a policy goal, it’s what makes California’s economy stronger. In fact, we both believe the economy is at its strongest when everyone is able to participate.

We urge eligible Californians — and those who support them — to take action. Accounts can be opened and managed by the person with the disability or by a loved one if they need assistance. For family members, caregivers and service providers: spread the word now and help someone take the next step toward financial independence.

Thomas Martin is the executive director of CalABLE and a CalABLE account owner. Julienne Dallara is an accessibility consultant, disability advocate and CalABLE ambassador.

This story was originally published January 8, 2026 at 5:00 AM with the headline "More Californians with disabilities can now save without penalty | Opinion."