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It may be given in return for goods, money loaned, or services rendered to the owner of the agreement (the seller). A promissory note is a liquid resource. The property itself is not a resource because the seller cannot legally convert it to cash while it is encumbered by the agreement. If payments received by the seller consist of both principal and interest, only the interest portion is income. The principal portion the promissory note is the conversion of a resource and is not income but is an available resource unless it is non-negotiable and the person provides evidence of a legal bar to the sale of the promissory note. Treatment of a promissory note for Medicaid LTSS eligibility related to the transfer of assets is located in Part 50-00-6 of this Title. g. Retirement funds. Any resource set aside by a person to be used for self-support upon their withdrawal from active life, service, or business. Retirement funds include, but are not limited to, certain IRAs, Keogh plans, 401K plans, pensions, mutual funds, stocks, bonds, securities, money market accounts, whole life insurance, and retirement annuities. The value of a retirement fund is the amount of money that can currently be withdrawn from the fund, less any penalties for withdrawal. An applicant or beneficiary who owns a retirement fund must apply for such funds or liquidate the fund. Retirement funds are excluded when owned by the person seeking Medicaid and termination of employment is required to obtain a payout from the fund; the owner is not eligible for periodic payments and does not have the option of withdrawing a lump sum; or the owner is eligible for periodic payments and is drawing down on the fund at a rate consistent with their life expectancy. When funds are being drawn down, the payout is treated as countable income for financial eligibility purposes and there is no deeming under Part 05-1 of this Chapter or attribution under Part 50-00-6 of this Title to a non-applicant spouse or child. The retirement fund of a non-applicant spouse is a non-deemable resource. In instances in which the retirement accounts are countable as a resource, the amount counted is the amount that can be withdrawn from the account, less any penalties. Any taxes owed as a result of the withdrawal are not deducted when determining the countable value of the retirement fund. Medicaid LTSS-specific provisions related to the treatment of retirement funds for the purposes of the community spouse resource allocation and the transfer of assets are located in Part 50-00-6 of this Title. h. Education funds. Resources set aside to pay for qualified education expenses such as 529 accounts and Coverdell Educational Savings Accounts. The full amount of such funds is excluded as a resource and are unavailable for deeming in the determination of financial eligibility when the monies deposited into the account are