under an individual development account pro-
gram administered by a Federal agency.’’; and 
(2) by adding at the end the following: 
‘‘(f) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—Whenever dollar amounts 
in effect under paragraphs (1)(A) and (2)(A) of sec-
tion 1611(a) are increased by a percentage under 
section 1617, each of the dollar amounts in effect 
under subsection (a)(17) of this section shall be in-
creased by the same percentage, and rounded to the 
closest multiple of $100. 
‘‘(2) REQUIREMENT.—Each adjustment under 
paragraph (1) shall be based on the unrounded 
amount for the prior 12-month period.’’. 
SEC. 4. INCOME RULES APPLICABLE TO CERTAIN DE-
FERRED COMPENSATION ARRANGEMENTS. 
(a) IMPUTATION OF INCOME IN CERTAIN CASES.— 
Section 1612 of the Social Security Act (42 U.S.C. 1382a) 
is amended by adding at the end the following: 
‘‘Imputation of Income From Certain Deferred 
Compensation Arrangements 
‘‘(c)(1) If the aggregate value of the assets described 
in section 1613(a)(17) of an eligible individual who has 
attained 65 years of age and is not described in section 
1611(e)(1)(B) exceeds— 
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‘‘(A) $10,000 (or, if greater, the amount deter-
mined under paragraph (2) of this subsection) if the 
individual does not have an eligible spouse; or 
‘‘(B) $15,000 (or, if greater, the amount deter-
mined under such paragraph (2)) if the individual 
has an eligible spouse, 
but does not exceed the dollar amount in effect with re-
spect to the individual under section 1613(a)(17), the as-
sets shall be considered income in an amount equal to the 
annuity value of the assets (as determined under regula-
tions of the Commissioner of Social Security). 
‘‘(2)(A) Whenever dollar amounts in effect under 
paragraphs (1)(A) and (2)(A) of section 1611(a) are in-
creased by a percentage under section 1617, each of the 
dollar amounts in effect under paragraph (1) of this sub-
section shall be increased by the same percentage, and 
rounded to the closest multiple of $100. 
‘‘(B) Each adjustment under paragraph (1) shall be 
based on the unrounded amount for the prior 12-month 
period.’’. 
(b) EXCLUSION
OF
ONE-THIRD
OF
DISTRIBU-
TIONS.—Section 1612(b) of such Act (42 U.S.C. 
1382a(b)) is amended— 
(1) by striking ‘‘and’’ at the end of paragraph 
(24); 
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(2) by striking the period at the end of para-
graph (25) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(26) one-third of the value of any assets de-
scribed in section 1613(a)(17) distributed to such 
individual (or such spouse).’’. 
SEC. 5. ELIMINATION OF REQUIREMENT THAT SSI RECIPI-
ENTS APPLY FOR PERIODIC PAYMENTS FROM 
CERTAIN 
DEFERRED 
COMPENSATION 
AR-
RANGEMENTS. 
Section 1611(e)(2) of the Social Security Act (42 
U.S.C. 1382(e)(2)) is amended by inserting ‘‘(other than 
payments from a plan, contract, account, annuity, or trust 
referred to in section 1613(a)(17))’’ after ‘‘section 
1612(a)(2)(B)’’. 
SEC. 6. EFFECTIVE DATE. 
The amendments made by this Act shall apply to ben-
efits for calendar months beginning after the date of the 
enactment of this Act. 
Æ 
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