Retirement Funds 6252018 2 Retirement Funds q Retirement

Retirement Funds 6/25/2018

2 Retirement Funds q. Retirement funds are annuities or work-related plans for providing income when employment ends (e. g. , pension, disability, or other retirement plans administered by an employer or union).

3 Retirement Funds q. Any Retirement funds including: § Employer Sponsored Retirement Plans § Employment-Related Retirement Plans § Individual Retirement Accounts q. Often have special tax status, i. e. . , deferred taxation

4 If A/R has retirement plans, ask: q. Is the owner receiving regular payments, i. e. , a pension benefit? q. If not, can they? q. If they are not eligible for payments, is any portion of the principal available

5 Availability of Retirement Benefits q. If A/R is receiving periodic payments, these payments are unearned income § A/R must maximize payments or document that payment less than the maximum cannot be changed

6 Availability of Retirement Benefits, (cont’d. ) q. If A/R is eligible for periodic payments, but isn’t receiving them: § A/R must apply for benefits § A/R must choose periodic payments rather than lump sum § A/R must choose maximum amount of payment available § Payments are counted as unearned income

7 Availability of Principal q. If A/R is receiving retirement benefit, the principal is considered unavailable § Can not be counted as a resource § Payments are counted as unearned income

8 Availability of Principal q. If A/R can not receive periodic payments, resource value of principal depends on availability

9 Availability of Principal, (cont’d. ) q. If A/R cannot withdraw any funds from the principal, the retirement plan is unavailable § Cannot be counted as resource

10 Availability of Principal, (cont’d. ) q. If A/R may withdraw funds § Maximum amount available (less early withdrawal penalties, not including income taxes) is a countable resource

11 Availability, (cont’d. ) q. A retirement fund is exempt as a resource for SSI-R A/R if: § Owned by the non-applying or ineligible spouse, and § A/R is NOT subject to spousal impoverishment

12 SSI-Related and Spousal Rules q. In Spousal Impoverishment cases: § The pension funds owned by ineligible or non applying CS are used first to determine MCSRA § Any excess is AVAILABLE to Institutionalized Spouse

13 Documentation of Retirement Funds q. SSI-R Applicants who are applying for nursing facility services or CC w/LTC must document: § If asset is a retirement fund § If the A/R is eligible for periodic payments and if so how much and when would they begin § If principal is available and if so, how much; (e. g. is there a penalty or not)

14 Documentation of Retirement Funds q. SSI-R A/R’s who attest to the value of their resources and own a retirement account: § Must pursue regular periodic payments § Must also prove whether or not payments are available to them § If payments are not available and A/R is excess resources they must provide proof of availability of the principal and how much