Elderly care savings trust accounts; established, administered by the Virginia College Savings Plan. (HB1035)

Introduced By

Del. Sam Rasoul (D-Roanoke) with support from co-patrons Del. James Edmunds (R-South Boston), and Del. Vivian Watts (D-Annandale)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Elderly care savings trust accounts established; administered by the Virginia College Savings Plan. Establishes elderly care savings trust accounts to be administered by the Virginia College Savings Plan to facilitate the saving of private funds to defray the medical and health-related expenses of the elderly. Elderly care savings trust accounts may be opened on behalf of qualified beneficiaries who are at least 45 years old. Contributions to an elderly care savings trust account and any earnings on the account may be used to pay or reimburse the medical and health-related expenses and costs of beneficiaries who are at least 60 years old. The account may be used solely for medical and health-related expenses and costs that are not otherwise paid or reimbursed or claimed as a federal or Virginia income tax deduction, subtraction, or credit. Contributions must be in cash. The qualified is the owner of the account and is limited to owning one account. The bill requires the Virginia College Savings Plan to establish (i) a minimum and maximum annual contribution to an elderly care savings trust account, (ii) a maximum total contribution to each elderly care savings trust account, (iii) a separate account for each qualified beneficiary, and (iv) terms and conditions for account refunds, withdrawals, transfers, and penalties. Under the bill, earnings on elderly care savings trust accounts are exempt from Virginia income tax. Distributions for qualified medical and health-related expenses of an elderly person are also exempt from Virginia income tax. All other distributions generally will be subject to Virginia income tax, with the taxable amount computed in the same manner that distributions from ABLE savings trust accounts are includible in federal gross income under § 529A of the Internal Revenue Code. The bill has a delayed effective date of January 1, 2017. Amends § 23-38.75, § 23-38.76, § 23-38.77, § 23-38.81, § 58.1-322, of the Code of Virginia. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/13/2016Prefiled and ordered printed; offered 01/13/16 16100268D
01/13/2016Referred to Committee on Finance
01/26/2016Assigned Finance sub: Subcommittee #1
01/27/2016Impact statement from DPB (HB1035)
01/27/2016Subcommittee recommends continuing to 2017 (9-Y 0-N)
02/01/2016Continued to 2017 in Finance
12/01/2016Left in Finance