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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | December 7, 2012 10:28 AM |
|---|---|
| From: | Senator Edwin B. Erickson |
| To: | All Senate members |
| Subject: | Qualified Disability Savings Accounts |
| I plan to re-introduce Senate Bill 259 of 2011, legislation that will create Qualified Disability Savings Accounts to benefit mentally retarded persons. The accounts, which could be created by an individual, or by an employer or family member for the benefit of a mentally retarded person, could be used to assist the beneficiary to achieve and maintain financial independence. Deposits to accounts would not be exempt from Pennsylvania personal income tax, but earnings on, and increases in value of, the account would be tax-free if spent for qualified disability expenses (education, training, assistive technology and other activities for which special needs trusts may be used). Annual contributions to accounts would be limited to IRS-set limits on gifts exempt from Federal gift tax (currently $13,000). Amounts deposited to accounts, earnings, and withdrawals used for qualified disability expenses would not be considered available assets or income for the purpose of assessing liability for care and maintenance of the beneficiary, and would not be required to be expended for care and maintenance, as such terms are used in the Mental Health and Mental Retardation Act of 1966, and in the Public Welfare Code. |
Introduced as SB330