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Retirement accounts with tax-preferred status are exempt as resources for SNAP. Other retirement accounts (such as through a financial institution) should be evaluated for availability. Once the account is available for withdrawal, the account is considered as a resource unless otherwise exempt.

The following types of retirement accounts are excluded from consideration as resources regardless of availability (as of Oct. 1, 2008):

IRS Code Plan What is it? Section 401 Traditional Defined- Benefit Plan Employer-based retirement plan that promises retirees a certain benefit upon retirement, regardless investment performance. Section 401(a) Cash Balance Plan Employer-based “hybrid” plan that combines features of defined benefit and defined contribution plans. Each employee is allocated a hypothetical account, but account balances accrue at a specified rate, rather than depending on investment performance. Section 401(a) Employee Stock Ownership Plan Similar to a profit-sharing plan that must be primarily invested in the employer’s stock, and under which distributed benefits must be offered in the form of the employer’s stock. Section 401(a) Keogh Plan “Informal” term for retirement plans available to self-employed people. Section 401(a) Money Purchase Pension Plan Employer-based defined contribution plan under which annual contributions are fixed by a set formula. Section 401(a) Simple 401(k) 401(k)-type plans available only to small businesses: exempt from certain restrictions and subject to some limitations on employer contributions. Section 401(a) Profit-Sharing Plan Employer-based defined contribution plan under