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TANF TANF TANF TANF TANF TANF TANF TANF SNAP SNAP SNAP SNAP SNAP SNAP SNAP SNAP 549.3 Vested Retirement Accounts A vested retirement account is an account to which an employee makes contributions for a specified period of time as defined by the employer. The money contributed by the employee is not matched by the employer until the defined period of time ends. Exempt this money as a resource even if it is accessible with a penalty. 549.4 401K Plans The term 401K refers to the section of the Internal Revenue Service Code. A 401K plan allows an employee to postpone receiving a portion of current income until retirement. Exempt money in a 401K plan as a resource even if it is accessible with a penalty. 549.5 Other Plans The following are considered exempt resources:  Section 401(a), which includes funds commonly known as “tax qualified retirement plans”.  Section 403(a), which includes funds that are similar to 401(a) plans but are funded through annuity contracts.  Exempt 457 plans (state and local governments, and other tax-exempt organizations).  Federal Employee Thrift Savings plan.  Section 501(c)(18) plans (retirement plans consisting of employee contributions to certain trusts that must have been established before June 1959).  Section 403(b) plans (tax-sheltered annuities provided or employees of tax-exempt organizations, and state and local educational organizations).  Section 529A, which includes funds in a qualified ABLE program. A-549.3 Division of Welfare and Supportive Services RESOURCES Eligibility and Payments Manual Vested Retirement Accounts MTL 06/24 Nov 24