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FOR IMMEDIATE RELEASE
March 13, 2009
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Orie Supports Disability Savings Accounts

Legislation would aid individuals with mental retardation

Individuals with mental retardation would be able to set up disability savings accounts for their expenses, under legislation supported by Senator Jane C. Orie (R-40).

Orie said the accounts would work along the same lines as a "health savings account," which are designed to help individuals save for future qualified medical and retiree health expenses on a tax-free basis.  Disability savings accounts would encourage individuals with disabilities and their families to save private funds for disability-related expenses to supplement, not supplant, benefits provided by other sources.

"The goal of this legislation is to help mentally retarded individuals to pay for goods and services they need to improve their quality of life and maintain an independent lifestyle," said Sen. Orie.  "This will help those with mental retardation and their families to plan financially for special needs.

Under Senate Bill 131, disability savings accounts could be used to pay for goods and services which help the accountholder to attain or maintain independence, or to obtain educational opportunities, job training, employment, housing or to otherwise ease the impact of disabilities and support the activities of daily life.

Accounts could be created by the individual, an employer or family member for the benefit of the individual for taxable years beginning after December 31, 2006.  Cash contributions of up to $11,000 may be made by an individual account holder, employer, parent or guardian from an account used exclusively to pay qualified disability expenses from State personal income taxes.

Senate Bill 131 has been referred to the Senate Finance Committee for consideration.

Contact: 

Nate Silcox (717) 787-6538