Page 5

Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources

September 1, 2026 Division of TennCare 5 • The type of annuity issuer (e.g., commercial, private). 4. Countable Value Annuities may be counted as a resource or as unearned income, depending on the circumstances of the annuity. An annuity is a resource during the free look period and the accumulation phase. Free Look Period • During the free look period, the countable value of an annuity is the purchase value. (Exception: The value of a variable annuity may be more or less than the purchase value.) Accumulation Phase

• During the accumulation phase, the countable value of an annuity is the cash value, minus any withdrawals and surrender charges or penalty fees for early withdrawal. Distributions from an annuity, such as systematic withdrawals and RMDs, should be considered conversions of a resource rather than income. Some annuity contracts contain a provision allowing an individual to cash in the contract after annuitization. If an annuity contract contains such a provision, the annuity is a resource, and the countable value is the commuted cash value, i.e. the present value of all future payments. An annuity is unearned income when it has been irrevocably converted to an income stream and is no longer available as a lump sum. Any portion of an annuity payment held following the month of receipt is a countable resource, except when the annuity is a State annuity for certain veterans. A State annuity for certain veterans is an annuity paid for by a state to an individual the state determined is a veteran, who is aged, blind or disabled, or to that individual’s spouse.