ASSET-BUILDING @ IT’S MOMENT: FEDERAL POLICY JIM CASEY YOUTH CONFERENCE Carol Wayman, CFED.

ASSET-BUILDING @ IT’S MOMENT:FEDERAL POLICY

JIM CASEY YOUTH CONFERENCE

Carol Wayman, CFED

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


Assets Across America: Scorecard Data

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Policy Window - Open

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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)


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


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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The Saver’s Credit – Proposed: HR 1961/S. 3090

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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,

[email protected]

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ASSET-BUILDING @ IT’S MOMENT: FEDERAL POLICY JIM CASEY YOUTH CONFERENCE Carol Wayman, CFED.

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Transcript of ASSET-BUILDING @ IT’S MOMENT: FEDERAL POLICY JIM CASEY YOUTH CONFERENCE Carol Wayman, CFED.