Retirement Funds Any Retirement funds including Employer Sponsored

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

Types of Employer Sponsored Retirement Plans Defined Benefit Profit Sharing Roth 401(k) 401 (k) Keogh SEP SIMPLE or Contribution Plan

Employment Related Retirement Plans Available to employee through employment situation (type of business) ◦ Often supplements other retirement plans Types: ◦ 403 (b) ◦ 457 Funds held in individual’s name and fully available

Individual Retirement Accounts Available to anyone regardless of employment status Types: ◦ IRA ◦ Roth IRA Funds held in individual’s name and fully available

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

Availability of Retirement Benefits If A/R is receiving periodic payments, these payments are unearned income

Availability of Retirement Benefits, (cont’d) 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

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

Availability of Funds in Employer Sponsored Retirement Plans In Defined Benefit or Contribution Plans: ◦ Employer contributions are generally unavailable until employee retires ◦ Employee contribution may be available In other pension plans, e. g. , 401 (k), funds held in individual’s name and fully available

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

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

Availability, (cont’d) 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

SSI-Related and Spousal Rules 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

Documentation of Retirement Funds SS-R A/R’s 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)

Documentation, (cont’d) 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