New York, New York – February 16, 2023 – Today, Vestwell, the leading small business and individual savings platform, announced it has been selected to power California’s CalABLE program, one of the largest independent ABLE programs in the nation. This marks Vestwell’s twentieth ABLE program partnership and makes the firm the largest ABLE program provider in the country.
The Achieving a Better Life Experience (ABLE) Act was created in 2014 to allow states to help individuals and family members with disabilities save on a tax-advantaged basis for qualified expenses. In 2018, CalABLE was established to provide an ABLE program offered by the state of California, to individuals with disabilities, giving them the opportunity to save up to $100,000 in an ABLE account with no impact on SSI or other means tested federal benefits and supporting their financial wellness and independence. CalABLE, powered by Vestwell, will improve Californians' ability to access disability savings across the state.
“CalABLE is an essential program for thousands of Californians with disabilities that need a tax benefit to help offset the added expenses that can come with having a disability,” said Aaron Schumm, founder and CEO of Vestwell. “With the recent passing of the ABLE Age Adjustment Act under SECURE 2.0, we expect significant growth of these savings programs, with another six million Americans with disabilities who are now eligible to save through the ABLE programs. We’re incredibly proud to support more Californians with access to these life-changing accounts.”
Through its award-winning technology, extensive expertise, and innovative team, Vestwell has won every state contract that has been awarded in the last year. These include the Colorado Secure Savings Program, RetirePath Virginia, and now, CalABLE.
With this partnership, Vestwell will assume administration for the program and provide Californians with disabilities a digital platform and a seamless way to save without losing their federal benefits. Vestwell’s proprietary platform also streamlines the administration and maintenance of ABLE accounts for organizations, such as service providers, professional guardians, or representative payees, making it easier to expand the reach of this program.
“CalABLE is committed to providing the best possible program for eligible Californians,” said Dante Allen, Executive Director of CalABLE. “Vestwell’s platform is designed to be simple and intuitive, which is critical for ABLE participants. By selecting Vestwell, CalABLE will be a user-friendly and more accessible experience for our savers.”
Eligible individuals, family, and friends can currently contribute up to $17,000 a year and if the account owner is employed, additional employment contributions can be made through ABLE To Work contributions. As a tax-advantaged plan, ABLE account contributions are invested, grow tax-free, and can be withdrawn tax-free to pay for qualified expenses. Best of all, earnings on qualified withdrawals from a CalABLE account are not subject to federal and California state tax. Qualified expenses for ABLE accounts include education and employment training, housing and transportation, personal support services and assistive technology, healthcare costs, along with financial management and administrative services.
For more information, please visit: www.vestwell.com/state-savings.
Vestwell is the modern fintech engine powering savings and investment programs for small businesses and individual savers across the country. We’re helping to close the savings gap by offering a flexible, cost-effective, modern solution to save for the critical aspects of life - retirement, education, and healthcare. Vestwell currently powers nearly 25,000 small businesses, over a million savers, and $27 billion in assets in all 50 states. To learn more visit vestwell.com.
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