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2840.20.10 PENSIONS (MED 3) For MAGI AGs, pension payments from a qualified employer retirement plan may be fully or partially taxable income. Pension payments are fully taxable if the individual did not contribute to the pension, the employer did not withhold contributions from the individual’s salary, or the individual received tax-free contributions in previous years. Such pension payments are counted in the calculation of MAGI for household income. Pension payments are partially taxable if the individual contributed after tax dollars to the pension. The part of the pension payment that represents the amount paid with after tax dollars by the individual is not taxable. The part of the pension payment that represents the amounts that the individual did not contribute to the pension, or the amounts contributed by the individual but were tax free is taxable income and will be included in calculating MAGI for the household income. If an individual has a traditional Individual Retirement Account (IRA), a full deduction is allowed for the amount contributed to the IRA if the individual and the spouse, if applicable, do not have a traditional IRA plan at a place of employment. If an individual has a traditional IRA plan at his or her place of employment, his or her contributions are deductible in full or partially based upon income limitations. Roth IRA contributions are not deductible from taxable income. 2840.25.00 UNEMPLOYMENT COMPENSATION BENEFITS Unemployment compensation benefits (UCB) may be available through Indiana Workforce Development to unemployed individuals who have a recent history of "covered" work and who are currently available for work. For non-MAGI (MED 1, 2, 4) AGs, UCB is counted as unearned income. Refer to IHCPPM 2890.10.40 for verification requirements. For MAGI (MED 3) AGs, UCB is taxable income and counted in the calculation of MAGI for household income. However, any amount an individual voluntarily contributes to a private fund is not taxable income and not counted in the calculation of MAGI for household income. The only amounts taxable from private funds are amounts received by the individual greater than the individual’s contribution. For purposes of calculating MAGI, if an individual is required to repay a portion of UCB, the amount repaid is deducted from the amount he or she receives. 2840.30.00 WORKER’S COMPENSATION