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SNAP CERTIFICATION MANUAL – SECTION 4000 3B4400 Excluded Resources 12B4421 Pension or Retirement Funds

resource for SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM purposes. See SNAP 4602. 4421 Pension or Retirement Funds SNAP Manual 10/01/08 Tax-preferred retirement accounts (e.g., IRAs) and employer sponsored retirement accounts are excluded as countable resources in determining Supplemental Nutrition Assistance Program eligibility. This includes any funds in a plan, contract, or account, described in sections 401(a), 403(a), 403(b), 408, 408A, 457(b), and 501(c)(18) of the Internal Revenue Code of 1986 and the value of funds in a Federal Thrift Savings Plan account as provided for in 5 U.S.C. 8439. It also provides for the exclusion of any successor retirement accounts that are exempt from Federal taxes. The chart on the following page provides guidance on pension or retirement accounts based on the Internal Revenue Code of 1986. Resource Excluded Retirement Accounts/Plans

Retirement Plan of Account Type What is it? Authorized Under 401(k) plan Defined-contribution plan that allows employees to contribute to their accounts from their salary or wages on a pre-tax basis (with earnings tax-exempt until withdrawn). Employee may or may not contribute. Section 401(a) of the Internal Revenue Code 403(b) plan Tax-sheltered annuity of custodial account plan offered by certain tax. Section 403(b) of the Internal Revenue Code 457 plan 401(k)-type plan offered by state and local governments and non-profit organizations. Section 457 of the Internal Revenue Code 501(c)(18) 401(k)-type plan offered mostly by unions. Had to be set up prior to June 1959; now largely obsolete. Section 501(c) (18) of the Internal Revenue Code Cash Balance Plan Employer-based hybrid plan that combines features of defined-benefit and defined- contribution plans. Section 401(a) of the Internal Revenue Code Federal Employee Thrift Savings Plan 401(k)-type plan offered by the federal government to its employees. Section 8439 of Title 5 of the US Code