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Chapter: 1600 Assets Program: MSSI, SFP 17

be considered an available asset to the individual unless payments begin, in which case the payment is considered unearned income. The value of the retirement fund continues to be an excluded asset as long as regular payments continue.

Refer to Chapter 1800 for policy on how to consider interest earned on retirement funds. 1640.0505.05 Retirement Funds of Spouses (MSSI, SFP) The following policy applies to the MEDS-AD, QMB, SLMB, QI1, EMA, Protected Medicaid, Medically Needy, and Working Disabled Programs: Pension funds owned by an ineligible spouse are excluded from assets for deeming purposes; however, any income received is deemed to the eligible spouse. Refer to Chapter 2200 for policy on deeming exclusions.

The following policy applies to ICP, institutionalized MEDS-AD, institutionalized Hospice, HCBS and PACE Programs when the applicant has a community spouse (refer to Glossary, Chapter 4600, for definition):

1. At the time of application, if the community spouse receives payments from their retirement funds, the funds are not considered an asset when computing the couple's total countable assets. The payment is considered unearned income to the community spouse when computing the community spouse income allowance.

2. At the time of application, if the community spouse does not receive payments from a retirement fund he owns, but he has the option of withdrawing a lump sum, the total value of the funds must be considered an asset when computing the couple's total assets and the community spouse's asset eligibility. Early withdrawal penalties are excluded from the value of the funds, but any imposed taxes cannot be deducted.

Refer to passage 1640.0606 and following passages on transfers to retirement funds within the application look-back period. 1640.0505.06 Special Accounts for Medical Services (MSSI, SFP) Bank accounts established under the Consumer Directed Care (CDC) Project to receive funds for purchase of approved medical or social services are excluded as an asset as long as the funds are separate and clearly identifiable. In order to be excluded, CDC funds must not be commingled with other assets.

The account must be identified as a Consumer Directed Care Project budget account by the Department of Elder Affairs in order for the exclusion to apply. 1640.0505.07 Individual Development Accounts (MSSI) 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 SSI-Related Medicaid. 1640.0506 Verification of Bank Accounts (MSSI, SFP) Information required for verification of an individual's bank account assets includes the:

1. type of account; 2. name and location of the financial institution;