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Chapter: 1800 Income Program: MSSI, SFP 32 1840.1001 Dividends and Interest on Burial Funds (MSSI, SFP) Any appreciation in the value of assets designated as burial funds excluded as an asset, is also excluded as income. Similarly, any interest paid on excluded burial accounts that is left to accumulate in the account is also excluded from income. All interest and dividends left to accrue on the designated burial fund, regardless of the asset amount designated for burial, are excluded. However, any interest or dividends which are paid directly to the individual and which are set aside for burial purposes are included as unearned income, unless otherwise excluded. 1840.1002 Interest on Time Deposits (MSSI, SFP) Interest on time deposits available on demand or available only at maturity is excluded as income in the eligibility budget. Interest on time deposits count in the patient responsibility calculation when it becomes available, unless it can be excluded under a separate provision (i.e. infrequent or irregular income excluded due to federal law). 1840.1003 Interest on Retirement Funds (MSSI, SFP) If the interest earned on retirement funds can be accessed and the principal is included as an asset, the interest is excluded as unearned income to the individual. If the interest earned on retirement funds cannot be accessed, it becomes part of the fund principal and an excluded asset.

If the retirement fund is excluded as an asset because it is paying periodic payments, both the interest and principal portions of the payment are counted as unearned income to the individual in eligibility and patient responsibility calculations. In patient responsibility calculations, include the income of the eligible individual as well as the spouse, family member, or dependent if income diversion is applicable. 1840.1004 Savings Bonds (MSSI, SFP) Interest on some bonds (series E) is not available until the bond is redeemed. On other bonds, interest is paid periodically while the bond remains owned. Interest on a series H bond is paid semiannually with the first payment date six months from the date of issuance.

The interest on savings bonds is excluded as unearned income in the eligibility calculation. In patient responsibility calculations, include the interest income of the eligible individual as well as the spouse, family member, or dependent if income diversion is applicable. 1840.1005 Stock Dividends (MSSI, SFP) If a stock dividend is in the form of additional shares of stock, then the value of the additional shares is included as unearned income. 1840.1006 Mortgages and Promissory Notes (MSSI, SFP) If the mortgage or promissory note is included as an asset, the interest portion of a payment is excluded as interest income in the eligibility calculation, but is counted in the patient responsibility calculation.

If the mortgage is excluded as an asset, both the interest and principal portions of the payment are counted as unearned income in eligibility and patient responsibility calculations. In patient responsibility calculations include the income of the eligible individual, spouse, family member or dependent, if income diversion is applicable.