Author Topic: New Tax Advantaged Investment Account Type??  (Read 1294 times)

bertrandhustle

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New Tax Advantaged Investment Account Type??
« on: December 03, 2014, 05:33:05 PM »
http://bigstory.ap.org/article/52aa7f60197042eca258d3c7fa17742c/bipartisan-bill-widen-federal-help-disabled

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...the House overwhelmingly approved a bill Wednesday to allow Americans with disabilities to open tax-free bank accounts to pay for expenses from education to housing and health care.

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Modeled after tax-free college savings accounts, the bill would amend the federal tax code to allow states to establish the program. To qualify, a person would have to be diagnosed with a disability by age 26 that results in "marked and severe functional limitations"; those who are already receiving Social Security disability benefits would also qualify. Families then would be able to set up tax-free accounts at financial institutions, depositing up to $14,000 annually to pay for long-term needs such as education, transportation and health care.

The article goes on to say 54 million Americans could be eligible. It will be interesting to see how "severe functional limitations" is defined in practice.

Thoughts?

MDM

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Re: New Tax Advantaged Investment Account Type??
« Reply #1 on: December 03, 2014, 10:07:32 PM »
Article actually says "...54 million disabled people and their families." 

Hard to believe that ~17% of the people in this country (~320 million total population) are truly disabled.  E.g. see http://www.ssa.gov/oact/STATS/dibStat.html.

I'm guessing the "54 million" is another example of this: http://www.chicagoreader.com/chicago/new-york-times-statistical-errors-breast-cancer-fatality-rate/Content?oid=12266041