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West Virginia Income Maintenance Manual Chapter 24

West Virginia Income Maintenance Manual Page 58 Chapter 24 Long Term Care

▪ A simplified employee pension [IRC Section 408 § (k)]; or ▪ A Roth Individual Retirement Account (IRA) (IRC Section 408A). OR 3. The annuity meets all of the following requirements: ▪ The annuity is irrevocable and non-assignable; and ▪ The annuity is actuarially sound; and ▪ The annuity provides payments in approximately equal amounts, with no deferred or balloon payments. Endowment Life Insurance Policies are considered balloon annuities and subject to a transfer penalty. ➢ Community Spouse Is Annuitant Establishment of an annuity is treated as a transfer of resources, unless the annuity meets the following criteria: • The individual disclosed to the State any interest the individual or his spouse has in any annuity; and, • The State is named as the remainder beneficiary, or as the second remainder beneficiary after a community spouse or minor or disabled adult child, for an amount at least equal to the amount of Medicaid benefits provided when the annuity is purchased by an applicant or spouse. If the annuity does not meet all stated requirements above, the full purchase value is considered the amount of the transfer. 24.8.2.E.2 Actuarial Soundness In order for an annuity to be actuarially sound, the average number of years of expected life remaining for the individual who benefits from the annuity must coincide with the life of the annuity. If the individual is not reasonably expected to live longer than the guarantee period of the annuity, the individual will not receive FMV. The annuity is not, then, actuarially sound and a transfer of resources for less than FMV has taken place. Periodic life tables can be found in the appendices as follows: