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Chapter: 1600 Assets

Program: FS 5 1610.0501 Bank Accounts (FS) Bank accounts refer to funds in a bank, credit union, savings and loan association or any other financial institution that are usually payable on demand. Interest earned on bank accounts is excluded as unearned income.

The asset value is the balance in the account on the date on which eligibility is established. If the total asset value of the account does not affect eligibility, it is not necessary to determine the amount of any transactions that have not cleared the account or the individual's portion of a joint bank account. 1610.0503 Funds in a Convenience Bank Account (FS) A convenience account is an account whose funds are owned by only one person even though the account is in the name of two persons.

SFUs containing members whose names are on joint bank accounts but who claim that they do not own the funds in the account, will be given the opportunity to verify that the account is a convenience account. In order to prove that the assets are in a convenience account the SFU must provide verification that the funds in the account are not owned or accessed by any SFU member; and any SFU member's name on the account is for the sole benefit of a non-SFU member. 1610.0504 Time Deposits (FS) The availability of funds is the deciding factor in determining if a time deposit is an asset. Time deposits such as a savings certificate or certificate of deposit usually are available to the individual and are included as assets.

Any interest penalties imposed for withdrawing the time deposit funds prior to maturity are deducted from the total amount when determining the value of the time deposit asset. Interest penalties may involve a reduction in the interest rate and/or loss of interest for a short period of time.

Any interest retained after the month it is available is included as an asset. 1610.0505 Retirement Accounts and Pension Plans (FS) Exclude all retirement accounts and pension plans. Count distributed funds as:

1. unearned income if made available through installment payments, or 2. an asset in the month received if made available as a lump sum payment. 1610.0505.07 Individual Development Accounts (FS) Individual Development Accounts (IDAs) are dedicated savings accounts that can be used by eligible participants for purchasing a first home, paying for post-secondary education, transportation, assistive technology or capitalizing a business. These IDAs are comprised of participant’s savings from earned income and may be matched by funds controlled by the Regional Workforce Board. Excluded IDAs must be funded in part with TANF or Assets for Independence Act (AFIA) dollars.

Funds in an IDA, including interest accruing in such accounts, shall be disregarded in determining eligibility for food stamps.