The Disability Savings Act of 2008

March 17, 2008 Kyron 1 Comment

saint patrick The Disability Savings Act of 2008First of all – Happy St. Patrick’s Day!! As a proud irishwoman I can’t let the day go by without acknowledging it!

Today I wanted you all to become aware of a piece of legislation introduced by former presidential candidate Senator Chris Dodd. It is called the Disability Savings Act of 2008. According to Senator Dodd’s website the purpose of this Act is:

To encourage individuals with disabilities and their families to save private funds for disability-related expenses to supplement, not supplant, benefits provided by other sources (including Medicaid and private insurance) so that people with disabilities can maintain health, independence, and quality of life.

These accounts would work similarly to a 529 plan. It allows family members to put aside money to supplement care needed for education, medical services, job training and transportation. The money saved in this program will not jeopardize government program support for individuals with special needs.

With a cap of $1 million Disability Savings Accounts (DSA’s) will have certain tax benefits as well:

  • Funds expended from the DSA for specific services such as education, medical services, employment training and support, transportation, and other related services will be tax-free.
  • Interest on accounts with a balance of $250,000 or less is tax free.
  • Low income earners will receive a refundable matching tax credit of up to $1000 for their contributions to the DSA.

Funds from college savings plans and special needs trusts for the same beneficiary can be rolled into the DSA without penalty.

The theory is that these accounts would be far easier to set up than say a Supplemental Needs Trust and therefore make available an avenue for planning for special needs individuals without the need to consult an attorney which can be cost prohibitive. Disability would be determined by the Social Security Administration or the Disability Determination Service of a state and would have to be under the age of 65.

Senator Dodd acknowledges the difficulty of passing a piece of legislation like this during an election year. He told the people gathered for this announcement that he needed a co-sponsor from across the aisle (meaning he needs a Republican) and that he needs significant support. Actually he said he needed an army of supporters and then added “And you’re my army

He absolutely does need an Army if we stand any chance of getting this legislation passed. Be a part of the army. If you have a US Senator representing you that is Republican, suggest they support this by co-sponsoring this important piece of legislation. Regardless of who represents you in the US Senate (you can find out at votesmart.org) contact them asking them to support this incredibly important piece of legislation.

I’ll update you as I can regarding it’s movement through the Senate. Seems to me it only benefits everyone to have this passed. Let’s start marching forward now!!!

Related posts:

  1. The Sunday Paper for March 9, 2008
  2. The Sunday Paper for February 17, 2008
  3. The Sunday Paper for February 24, 2008
  4. The Sunday Paper for March 2, 2008
  5. The Sunday Paper for January 20, 2008….

Currently there is "1 comment" on this Article:

  1. You know this could be a good idea. The only drawback that I can see is this;

    Anytime there is money saved somewhere and the Government or politicans have any sort of envolvement the money dissapears and then they all start slinging mudd at each other as to why there are no funds in the account.

    Our Government today is run by some of the greediest people alive. They don’t care about anything except how to get more money into their own accounts. The only time they recognize the general public is during election time.

    Politics should be a job, not a career. Two terms and your OUT. And your paycheck STOPS just like anyone else when losing a job.

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