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Volume III | Chapter 5 5205

MISSISSIPPI [ RESOURCES: RESOURCES TO BE EXCLUDED ] Revised 10-01-094-01-20 - -

ABLE Accounts Achieving a Better Life Experience (ABLE) accounts are tax-advantaged savings accounts for individuals with disabilities.

Small Business Equipment, Farming Machinery and Implements Equipment essential to the operation of a small business is disregarded. The value of assets associated with a farming operation is also disregarded. Life Insurance The cash surrender value of a life insurance policy is disregarded. Education Savings Plans Education Savings Plans identified as tax preferred accounts are excluded from the resource determination. Such savings plans include qualified tuition plans under Section 529 that allow either prepayment of education expenses or contributions to an account to pay such expenses, and Coverdell education savings accounts to pay student education expenses. Retirement Plans All retirement savings plans authorized under sections 401, 401(a), 403(a), 403(b), 408, 408A, 408(k), 408(p), 457(b), and 501(c)(18) of the IRS code, and the value of funds in a Federal Thrift Savings Plan account as provided in section 8439 of Title 5, United States code, are excluded in the resource determination. The list of excluded accounts is subject to change based on possible future changes in federal policy, and accounts may not be limited to those listed on the chart on the following page. EXAMPLES OF EXCLUDED RETIREMENT PLANS AND ACCOUNTS Plan/Account What is it? Authorized Pension or traditional defined-benefit plan Employer-based retirement plan that promises retirees a certain benefit upon retirement, regardless of investment performance. Section 401(a) IRS Code