California SB1436 amends tax code to implement qualified ABLE programs for individuals with disabilities.

California SB1436 amends the state's tax code to implement qualified ABLE programs, which are savings accounts for individuals with disabilities. The bill allows contributions to these accounts without incurring taxes or penalties, provided the funds are used for qualified disability expenses. Contributions are limited to the federal gift tax exclusion amount or compensation, whichever is less. The bill also specifies that contributions cannot be made in anything other than cash and must not exceed annual limits.

California SB1436 amends tax code to implement qualified ABLE programs for individuals with disabilities.

California SB1436 amends the state's tax code to implement qualified ABLE programs, which are savings accounts for individuals with disabilities. The bill allows contributions to these accounts without incurring taxes or penalties, provided the funds are used for qualified disability expenses. Contributions are limited to the federal gift tax exclusion amount or compensation, whichever is less. The bill also specifies that contributions cannot be made in anything other than cash and must not exceed annual limits.