Page 17

Louisiana Medicaid Eligibility Manual Eligibility Factors

Reissued October 21, 2025 Page 17 of I-1670 Replacing January 27, 2025 Revised/added text indicated by underscore Deleted text indicated by “**” • Requests to change the distribution of the annuity, and

• Election to annuitize the contract and similar actions taken by the individual.

Routine changes and automatic events that do not require any action or decision after the effective date of the enactment are not considered transactions that would subject the annuity to treatment under these provisions that went into effect on February 8, 2006.

Treatment of Annuities in Determining Eligibility

The following types of annuities are not treated as a transfer of assets if the annuity meets the following conditions (these conditions do not apply to an annuity owned or purchased by the community spouse):

a) The annuity is considered either:

(1) An individual retirement annuity (according to Section 408(b) of the Internal Revenue Code of 1986 (IRC)); or

(2) A deemed Individual Retirement Account (IRA) under a qualified employer plan (according to Section 408(q) of the (IRC)); or

b) The annuity is purchased with proceeds from one of the following:

(1) A traditional IRA (IRC Sec. 408a); or (2) Certain accounts or trusts which are treated as IRAs (IRC Section 408 §(c)); or (3) A simplified retirement account (IRC Sec. 408 §(p)); or (4) A simplified employee pension (IRC Sec. 408 §(k)); or

c) The annuity meets all of the following requirements:

(1) The annuity is irrevocable and non-assignable; and (2) The annuity is actuarially sound; and (3) The annuity provides payments in approximately equal