Bill Proposed to Raise SSI Asset Limit

On March 24th, Congresswoman Tsongas (D-MA), along with Congressman Petri (R-WI), introduced the SSI Savers Act of 2010 (H.R. 4937) proposing to reform the asset test in the Supplemental Security Income (SSI) program, the primary provider of subsistence cash to extremely low-income individuals, seniors, and people with disabilities.

In general, eligibility for SSI is limited to those who have assets of $2,000 or less for an individual and $3,000 or less for a couple. The SSI test generally counts all resources deemed accessible to an individual, including defined-contribution retirement accounts, such as 401(k)s and IRAs, under the asset limit.

H.R. 4937 proposes to remove savings disincentives in SSI by:

• Raising the asset limit to $5,000 for single and $7,500 for joint tax filers and indexing these limits for inflation;
• Excluding retirement savings from inclusion in the asset test for noninstitutionalized individuals under the age of 65;
• Excluding savings in qualified retirement accounts below a specified ceiling of (indexed for inflation) $10,000 for an individual and $15,000 for a couple or household for noninstitutionalized individuals age 65 or older;
• Disregarding one third of the funds drawn down from retirement accounts when calculating household income for noninstitutionalized individuals age 65 or older;
• Removing the requirement that SSI recipients, if eligible, must apply for periodic payments from their retirement savings, and;
• Excluding Education Savings Accounts and Individual Development Accounts funded all or in part with federal dollars or defined in federal programs for those under age 65.

For more information go to http://www.washingtonwatch.com/bills/show/111_HR_4937.html

Source: Justice for All http://jfactivist.typepad.com/jfactivist/current_affairs/

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