Goodwill Industries International is calling on the U.S. House of Representatives to pass H.R. 3696, which would modify the nation's disability policies to exclude 401(k) and IRA retirement accounts from federally funded means-tested benefits, so that all Americans can pursue a path to self-sufficiency and financial independence. ...
When people with disabilities are placed into a full-time position for the first time, they can do things that many people take for granted, such as opening a checking account and even making small contributions to their employer's 401(k) plan. But existing disability policy creates a disincentive to work and is feeding fears that if people do work and save for retirement they will lose their eligibility for income support and Medicaid.
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Oct 12, 2007
Should 401(k)s And IRAs Count?
From a press release:
What really needs to be done is raise the SSI resource limits the same as other things like SGA and TWP amounts increase. I know the limits of $2000 for an individual and $3000 for a couple have been that amount for at least 10 years.
ReplyDeleteRaising the resource limit might help small percentage of SSI recipients. However, as an SSI claims rep for 20 years, I have observed the majority of the recipients live from benefit check to benefit check and look at any lump sum payments as a way to make a major purchase quickly. SSI recipients are inherantly not savers.
ReplyDeleteHowever, a REAL incentive would be to raise the earned income exclusion from its 1974 value of $65 per month to something worthwhile in 2007, like $250-$500 per month. Then, the disabled can see gains in their standard of living by earning money from the sweat of their own brow, they can learn important job skills that might possibly lead to better jobs, and also feel the intrinsic increase in self worth that comes from acheivement. The $65 earned income exclusion is a disincentive.