Retirement Funds Any Retirement funds including Employer Sponsored

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Retirement Funds • Any Retirement funds including: – Employer Sponsored Retirement Plans – Employment-Related

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 or Contribution Plan Profit

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

Employment Related Retirement Plans • Available to employee through employment situation (type of business)

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: –

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.

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

Availability of Retirement Benefits • 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

Availability of Retirement Benefits, cont • If A/R is eligible for periodic payments, but

Availability of Retirement Benefits, cont • 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

Retirement Account Maximizing Payments b. A single individual has an IRA of $25, 000.

Retirement Account Maximizing Payments b. A single individual has an IRA of $25, 000. b Using the life expectancy chart we have determined that their life expectancy is 15 years. $25, 000 ÷ 15 = $1, 666. 67 yearly ÷ 12 = $138. 89 monthly This is their maximized payment

Availability of Principal • If A/R is receiving retirement benefit, the principal is considered

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

Availability of Principal • If A/R can not receive periodic payments, resource value of

Availability of Principal • 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

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,

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

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

Retirement Account Availability of Principal A single individual has an IRA of $50, 000

Retirement Account Availability of Principal A single individual has an IRA of $50, 000 IRA - $5, 000 penalty $45, 000 countable resource - $3, 000 taxes $42, 000 is what they actually get, but we don’t allow the amount they paid for taxes.

Availability cont’d • A retirement fund is exempt as a resource for SSI-R A/R

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

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 • SSI-R Applicants who are applying for nursing facility services

Documentation of Retirement Funds • 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)

Documentation of Retirement Funds • SSI-R A/R’s who attest to the value of their

Documentation of Retirement Funds • 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