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Chapter: 1600 Assets Program: MSSI, SFP 16

1640.0504 Time Deposits (MSSI, SFP) 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.

Some time deposits cannot be withdrawn prior to maturity under any circumstances. Funds in this type of account are not included as an asset until they reach maturity and become available.

Any interest retained after the month it is available is included as an asset. 1640.0505.04 Retirement Funds (MSSI, SFP) This policy applies to MEDS-AD, Medically Needy, Protected Medicaid, EMA, Working Disabled, QMB, SLMB, QI 1, OSS and HCDA.

This policy also applies to ICP, institutionalized MEDS-AD, institutionalized Hospice, HCBS Programs and PACE for work-related retirement funds and pensions, including work-related annuities, such as Civil Service and Railroad Retirement annuities. This policy does not apply to ICP and the ICP-related Programs when an applicant/recipient uses a resource to purchase an annuity.

Note: Refer to the passages 1640.0609.02 and 1640.0609.03 for specific policy requirements for the purchase of an annuity prior to 11/01/2007 and on or after 11/01/2007.

Retirement funds are work-related annuities and plans for providing income when employment ends (for example, retirement plans administered by an employer or union, disability or pension). Other examples are funds held in an individual retirement account (IRA) and plans for self- employed individuals, sometimes referred to as Keogh plans.

Retirement funds must be treated as an asset or as income, unless they are considered unavailable.

If an individual is eligible to receive regular payments from a retirement fund, the payments are considered unearned income and the fund is not considered a countable asset to the individual. (If the individual is eligible to receive payments but elects not to, he is ineligible due to failure to file for other benefits to which he is entitled.)

If the individual is not eligible to receive payments from the retirement fund, the value of funds currently available is considered a countable asset. Any penalty imposed due to early withdrawal can be deducted when computing the value of the retirement fund, but any taxes due are not deductible.

A retirement fund is not an asset if an individual must terminate employment in order to obtain any payment.

Retirement funds that are unavailable due to legal restrictions are not counted. The eligibility specialist must obtain a written opinion from Circuit Legal Counsel on availability.

In the month a previously unavailable retirement fund becomes available, it is neither an available asset nor income unless a payment is received. If a payment is received, it is considered unearned income. In the month following the month the fund becomes available, the fund must