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F-420 Division of Welfare and Supportive Services TRANSFER OF ASSETS Medical Assistance Manual ANNUITIES 23 Oct 01 MTL 04/23 The purchase will not be treated as a transfer of assets if the annuity meets any of the following conditions:

Is 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

Is purchased with proceeds from one of the following:

1. A traditional IRA (IRC Section 408a); or

2. Accounts or trusts that are treated as traditional IRAs (IRC Section 408 §(c)); or

3. A simplified retirement account (IRC Section 408 §(p)); or

4. A simplified employee pension (IRC Section 408 §(k)); or

5. A Roth IRA (IRC Section 408A).

Or

Meets all the following requirements:

1. Is irrevocable and non-assignable;

2. Is actuarially sound;

3. Provides payments in equal amounts, with no deferred or balloon payments.

The burden of proof is upon the individual or their representative to verify if the annuity meets the provisions above. Absent proof, the full purchase value of the annuity is considered a transfer of assets.

Refer annuities which are irrevocable and non-assignable to the Chief of Eligibility and Payments to determine actuarial soundness.