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www.cfed.org202.408.97882
“We cannot rebuild this economy on the same pile of sand. We must build our house upon
a rock. We must lay a new foundation for growth and prosperity – a foundation that will move us from an era of borrow and spend to
one where we save and invest.”
-- President Barack Obama, April 2009
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Take Action!
Any tax bill should includeasset-buildingopportunities
for low-income families.
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Asset-building opportunities for 50 million people
Matched Savings Expansion Foster Youth Financial Security Act (HR 6193) ASPIRE: S. 3577, H.R. 4682 IDA Protection Act: H.R. 6067 Stephanie Tubbs Jones Assets for Independence Reauthorization Act of 2010
(H.R. 6354). Savings for Working Families Act: S. 985, H.R. 2277 Savings Enhancement for College Education: H.R. 1351 Expanding the Saver’s Credit: S. 3090, H.R. 1961
Infrastructure Improvements SSI Savers Act: H.R. 4937 Automatic IRA Act: S. 3760, H.R. 6099
= bipartisan support italics = House bill only
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Foster Youth Financial Security Act (H.R. 6193) Lead sponsor: Congressman
Jim Langevin (RI-D)
As of 11/10/2010 bill has
4 additional cosponsors: Fortney Pete Stark (CA-D)
John Conyers (MI-D) Rosa DeLauro (CT-D)
John Lewis (GA-D)
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Foster Youth Financial Security Act (H.R. 6193) $45 million annual appropriation to implement act No specific requirements of how much must be
spent on the IDAs State Agencies manage the IDAs
Savings match not specified in legislation, likely to conform to other HHS programs (ie: variable)
Broad eligible uses
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Children’s Accounts
Savings Enhancement for Education in College Act (HR 1351) Saver’s Credit for 529 College Savings Account
contributions and computers are eligible ASPIRE (HR 4682 & S 3577)
one‐time, $500 government contribution at birth supplemental contribution as much as $500
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Assets for Independence Program Facts
AFI provides the majority of federal funding for IDA matched savings programs across the country.
Many AFI projects offer services targeted to specific groups, including refugees/immigrants, victims of domestic violence, the homeless, and individuals with disabilities.
Tens of thousands of AFI savers have gone on to buy a home, attend college, or start a business.
IDA savers keep their homes and businesses and complete their college education
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IDA Protection Act, HR 6067
Adds $50 million for AFI IDAs
No match required Paid for by eliminating
a coal tax Introduced by
Congresswoman Linda Sánchez (CA-D)
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AFI Reauthorization
Stephanie Tubbs Jones Assets for Independence Reauthorization Act of 2010 (H.R. 6354)
Waivers included Ways and Means Committee
in House Health, Labor, Education and
Pensions in the Senate
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IDA Tax Credit (H.R. 2277/S. 985 - Lincoln)
Adds at least 2.7 million IDAs through a federal tax credit to financial institutions that match the savings of adults (ages 18-60)
Financial institutions would be reimbursed for matching funds ($2,000 over 4 years), plus a limited amount for administrative costs incurred ($50 per year per account)
$120 million for financial education
Accounts restricted (1) buying a first home; (2) receiving post-secondary education; or (3) starting or expanding a small business
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The Saver’s Credit - current
The Saver's Credit is a non-refundable tax credit available to eligible taxpayers who make salary-deferral contributions to their employer sponsored retirement plans(401(k), 403(b), SIMPLE, SEP or governmental 457 plan), and/or make contributions to their Traditional/Roth IRAs
The current credit is between 10-50% ofthe individual's eligible contribution of up to $2,000, which means it cannot be more than $1,000
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The Saver’s Credit - current
Adjusted gross income must not exceed the following limits:
Lower the individual's AGI, the higher the saver's credit eligibility
Vastly underutilized – 50 million individuals eligible, <6 m claim
Credit RateMarried and files a joint return
Files as head of household
Other category of filers
50% Up to $30,000 Up to $22,500 Up to $15,000
20% $30,001 – $32,500 $22,501 – $24,375 $15,001 – $16,250
10% $32,501 – $55,500 $24,376 – $37,500 $16,251 – $27,500
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Infrastructure Improvements
SSI Saver’s Act (HR 4937) Raising the asset limit to $5,000 for a single and $7,500 for joint
filers and index these limits for inflation Excluding retirement savings from inclusion in the asset test (<65
age) Excluding savings in qualified retirement accounts below a
specified ceiling of (indexed for inflation) $10,000 for an individual and $15,000 for a couple or household (indexed for inflation) (>65 age)
Exclude IDAs and Education Savings Accounts as well
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Automatic IRA, (S. 3760/HR 6099)
Automatic IRA Act of 2010 (S. 3760/HR 6099) Success of automatic enrollment in private sector > half U.S. workforce (78 million) do not have
access to employer‐sponsored retirement plan Obama FY 2011 budget request included
requirement: employers w/o retirement plans must offer auto payroll deductions into IRAs
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www.cfed.org
www.cfed.org/go/advocacy
http://cfed.org/policy/
http:///saverscreditalliance.cfed.org
http://www.childsavingscoalition.org/
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www.cfed.org
www.cfed.org/go/advocacy
Latest on legislation, track bills, send messages
Michelle Levy-Benítez, consultant, [email protected] Inemesit Imoh, Policy Associate, 202.207.0135, [email protected] Katherine Lucas, Policy Analyst, 202.408.9788, [email protected] Jessica Morales, Administrative Assistant, 202.207.0159,
[email protected] Carol Wayman, Federal Policy Director, 202.207.0125,
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