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Who cares
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Sponsors
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History
- Reported and committed to finance
- Referred to social services
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
Title of bill
An act to amend the social services law, in relation to exempting IRAs and Roth IRAs in the calculation of household benefits under public assistance programs
Purpose
For purposes of the calculation of household benefits under public assistance programs, IRAs and Roth IRAs shall not be included.
Summary of provisions
Section 1. Subdivision 1 of section 131-n of the social services law, as amended by chapter 373 of the laws of 2003, paragraph (c) as amended by section 5 of part J of chapter 58 of the laws of 2014 is amended to include Individual Retirement Accounts (IRAs) and Roth IRAs as exempt and disregarded in calculating the amount of benefits of any household under any public assistance program.
Section 2 is the effective date.
Justification
Under current law, Individual Retirement Accounts and Roth IRA are part of the calculation of household benefits under public assistance programs. Due to the inclusion of IRAs as part of this calculation it can lead to the disqualification of a household for benefits, furthermore for an individual to be eligible they may need to liquidate their IRAs, which if done before the age of 59 1/2, you will have to pay a 10% early withdrawal penalty in addition to income tax on the amount you withdraw.
By including these accounts in the calculation of household benefits and requiring individuals who have hit hard times to face a penalty in addition to liquidating their retirement savings, which could inevitably cause issues in the long term for individuals who have saved their entire working life to have a nest egg when they retire.
Legislative history
New Bill.
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately; provided, however, that the amendments to sections 131-n of the social service law made by section one of this act shall not affect the expiration of such section and shall be deemed to expire therewith.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.