TANF, SNAP, Children on TP 32 and Children on TP 56

A retirement account is one in which an employee and/or the employer contributes money for retirement. There are several types of retirement plans.

Some of the most common plans authorized under Section 401(a) of the Internal Revenue Services (IRS) Code are the 401(k) plan, Keogh, Roth individual retirement account (IRA), and a pension or traditional benefit plan. Common plans under Section 408 of the IRS Code are the IRA, Simple IRA, and Simplified Employer Plan.

A 401(k) plan allows an employee to postpone receiving a portion of current income until retirement.

An IRA is an account in which an individual contributes money to supplement the individual’s retirement income (regardless of the individual’s participation in a group retirement plan).

A Keogh plan is an IRA for a self-employed individual.

A Simplified Employee Pension (SEP) plan is an IRA owned by an employee to which an employer makes contributions or an IRA owned by a self-employed individual who makes contributions for the individual’s self.

A pension or traditional defined benefit plan is employer-based and promises a certain benefit upon retirement regardless of investment performance.

The following retirement accounts or plans are excluded:

Accounts established under Internal Revenue Code of 1986, Sections 401(a), 403(a), 403(b), 408, 408A, 457(b), 501(c)(18);

Plans established under the Federal Thrift Savings Plan, Section 8439, Title 5, United States Code; and

Other retirement accounts determined to be tax exempt under the Internal Revenue Code of 1986.

Any other retirement accounts not established under plans or codes listed above are counted.