New bill may boost ‘aging in place’ in U.S.
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A bill introduced in Congress this month could make it easier for Americans to afford the home modifications that could help them age in place.
The Home Modification for Accessibility Act of 2022, sponsored by Reps. Charlie Crist and Thomas Suozzi, would do several things to make it easier for seniors to afford adaptations to their homes:
People could, without penalty, withdraw funds of up to $30,000 (or $60,000 for couples) from a tax-exempt retirement plan “for retirement home improvements to an individual's primary residence to improve … accessibility, security, or safety of such residence.”
The amount of those withdrawals can be excluded from a person’s income for income tax purposes if the person taking the money is older than age 59½.
Taxpayers younger than 59½ can use 401K or individual retirement account funds for “retirement home improvement expenditures” without having to pay a penalty for early withdrawal.
Because the bill would change U.S. tax policy, it must be approved by the House Ways and Means Committee before a full vote can take place in the House of Representatives. The bill would then move on to the Senate and, if it passes there, require the president’s signature.
But if it passes, it would allow aging Americans to act more proactively to ensure they can live at home independently as they age, Crist said in a press release on his Congressional website.
“Given the option, the vast majority of seniors and people with disabilities want to stay in their own home for as long as possible. It’s more comfortable, less costly, and improves quality of life,” Crist said in the release. However, seniors’ fixed incomes and the fact that many struggle with health problems and disabilities has made it difficult for them to afford “accessibility upgrades.”
Souzzi said he co-sponsored the bill for similar reasons.
“We have a storm coming, with the number of disabled elders expected to double in the coming years. Fewer family caregivers are available for these aging Americans and the market for long-term care insurance is not currently sufficient to address these demographic challenges,” he said. “We must do all we can to ensure New Yorkers have the option to live and age safely in the comfort of their own home.”
Spike Cheever, director of business development for Evolve, welcomed the bill as a sign that U.S. leaders are responsive to the desire of most Americans to live at home for as long as possible as they age. Data from the American Association of Retired Persons shows that about 90 percent of people aged 65 and older want to live at home as they age, rather than in an assisted living facility, nursing home, or other institutional setting.
“We are excited about anything that helps our members make their homes safer and more livable,” Cheever said. “Even small changes to a home can make a big difference, but for seniors and disabled people, affordability is always a concern.
“This bill could help make a lot of housing a lot more accommodating. That helps not just the folks in these homes, but their loved ones, as well, who won’t have to worry as much about falls and other potential problems.”
Cheever noted that many studies have shown that living at home is typically also cheaper than institutional care, which costs thousands of dollars per month.
Crist and Souzzi also said that money freed up for home modifications will help employ contractors and other skilled workmen, driving both development and investment in local markets and creating new job opportunities for skilled laborers and contractors.
