|Posted:||February 4, 2015 03:34 PM|
|From:||Representative Todd Stephens|
|To:||All House members|
|Subject:||Tax Free Savings Accounts to Help People with Disabilities|
I will be introducing legislation to ease the financial stresses faced by individuals with disabilities by creating a tax-free savings account in the Commonwealth that may be utilized to cover qualified expenses such as education, housing and transportation. Congress recently passed, and the President signed, a law providing for federal tax benefits for these accounts and allowing states to provide for similar tax benefits.
These funds will supplement benefits provided to individuals with disabilities and provide a mechanism for their families to prepare for their long term care. The legislation allows for an account to be established that is similar to a PA 529 account. The funds that are contributed to this new account may only be utilized for qualified disability expenses.
Qualified disability expenses means any expense related to the eligible individual’s disability which are made for the benefit of the individual and include the following expenses:
• Employment training and support;
• Health, prevention and wellness;
• Financial Management and administrative services;
• Legal fees;
• Expenses for oversight and monitoring;
• Funeral and Burial expenses; and
• Other expenses approved through regulations.
This legislation will provide an additional tool to those who are planning for the future of an individual with a disability.
Please join me in co-sponsoring this bill.
Introduced as HB444