NY State Senate Bill 2017-S1728

Senate Bill S1728

2017-2018 Legislative Session

Exempts IRAs and Roth IRAs in the calculation of household benefits under public assistance programs

download bill text pdf

Archive: Last Bill Status - In Senate Committee Social Services Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to social services
May 23, 2017	reported and committed to finance
Jan 10, 2017	referred to social services

Votes

- May 23, 2017 - Social Services Committee Vote
  S1728
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Social Services Committee Vote: May 23, 2017
      
      aye (5)
      
      Alcantara
      
      Amedore
      
      Persaud
      
      Squadron
      
      Tedisco
      
      aye wr (2)
      
      Helming
      
      LaValle

2017-S1728 (ACTIVE) - Details

See Assembly Version of this Bill:: A4892
Current Committee:: Senate Social Services
Law Section:: Social Services Law
Laws Affected:: Amd §131-n, Soc Serv L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6290, A10346
2019-2020: A1259
2021-2022: A1546
2023-2024: A5508
2025-2026: A1878

2017-S1728 (ACTIVE) - Summary

Exempts IRAs and Roth IRAs in the calculation of household benefits under public assistance programs.

2017-S1728 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1728

 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 :

2015-16: S6290 - Finance

 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.

2017-S1728 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1728
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2017
                                ___________
 
 Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
   printed to be committed to the Committee on Social Services
 
 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

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 1 of section 131-n of the social services law,
 as amended by section 1 of part X of chapter 54 of the laws of 2016,  is
 amended to read as follows:
   1.  The  following resources shall be exempt and disregarded in calcu-
 lating the amount of benefits of any household under any public  assist-
 ance program: (a) cash and liquid or nonliquid resources up to two thou-
 sand  dollars,  or  three  thousand dollars in the case of households in
 which any member is sixty years of age or older, (b)  an  amount  up  to
 four  thousand  six  hundred  fifty  dollars  in a separate bank account
 established by an individual while currently in  receipt  of  assistance
 for  the  sole purpose of enabling the individual to purchase a first or
 replacement vehicle for  the  recipient  to  seek,  obtain  or  maintain
 employment, so long as the funds are not used for any other purpose, (c)
 an  amount  up  to  one thousand four hundred dollars in a separate bank
 account established by an  individual  while  currently  in  receipt  of
 assistance  for the purpose of paying tuition at a two-year or four-year
 accredited post-secondary educational institution, so long as the  funds
 are  not  used  for  any  other purpose, (d) the home which is the usual
 residence of the household, (e)  one  automobile,  up  to  ten  thousand
 dollars  fair  market  value,  through  March thirty-first, two thousand
 seventeen; one automobile, up to eleven  thousand  dollars  fair  market
 value,  from  April  first, two thousand seventeen through March thirty-
 first, two thousand eighteen; and one automobile, up to twelve  thousand
 dollars  fair market value, beginning April first, two thousand eighteen
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02016-03-7

 S. 1728                             2
 
 and thereafter, or such other higher dollar value as  the  local  social
 services  district may elect to adopt, (f) one burial plot per household
 member as defined in  department  regulations,  (g)  bona  fide  funeral
 agreements  up to a total of one thousand five hundred dollars in equity
 value per household member,  (h)  funds  in  an  individual  development
 account established in accordance with subdivision five of section three
 hundred  fifty-eight  of  this chapter and section four hundred three of
 the social security act [and], (i) for a  period  of  six  months,  real
 property  which  the household is making a good faith effort to sell, in
 accordance with department regulations and  tangible  personal  property
 necessary  for  business  or  for employment purposes in accordance with
 department regulations, AND (J) INDIVIDUAL RETIREMENT  ACCOUNTS  (IRAS),
 AND  ROTH  IRAS.  If federal law or regulations require the exemption or
 disregard of additional income and resources  in  determining  need  for
 family  assistance,  or  medical  assistance not exempted or disregarded
 pursuant to any other provision of this chapter, the department may,  by
 regulations  subject  to  the  approval  of  the director of the budget,
 require social services officials to exempt or disregard such income and
 resources. Refunds resulting from earned income  tax  credits  shall  be
 disregarded in public assistance programs.
   §  2.  This act shall take effect immediately; provided, however, that
 the amendments to section 131-n of  the  social  services  law  made  by
 section  one of this act shall not affect the expiration of such section
 and shall be deemed to expire therewith.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.