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TANF POLICY MANUAL

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A lump sum payment of ten thousand dollars or less deposited in an IDA within thirty days will not be counted as income.

Funds in an IDA in excess of $10,000 are counted against the $2500 resource limit.

Individual Retirement Account or Arrangement (IRA)/Simple IRA/ Simplified Employee Pension (SEP) IRA/Keogh Y Total cash value of an IRA, Simple IRA, SEP/ SEP IRA, or Keogh account minus the early withdrawal penalty is counted.

NOTE: If an individual withdraws funds from an IRA, Keogh, or other retirement account before reaching age 59½, the early withdrawal is subjected to an additional 10% tax penalty unless an IRS exception applies.

If the Keogh Plan contains a contractual agreement with a non-BG member, it is totally inaccessible and excluded. Interest earned on a loan Y Count as resource except in the month received Life insurance (cash value) N

Lump sum payments Y Retroactive lump sum SSI and TANF payments are disregarded. *If an optional BG member receives a lump sum and requests to be removed from the TANF BG, this resource will no longer be attributed to the remaining BG members. *If the lump sum includes a payment for the current month, the amount of that payment must be deducted from the lump sum before it is counted as a resource. *A resource coded as a lump sum should be updated to reflect the appropriate resource type, i.e., savings account, checking account, etc. at the next review. *If the addition of another resource makes the BG ineligible, the BG should be asked to update the value of the lump sum resource before closing the case due to excess resources. *Earmarked lump sum payments designated for a specific purpose are disregarded for 60 days. If not expended within 60 days, without good cause, count as resource.