Department of Social Services
Family Support Division
PO Box 2320
Jefferson City, Missouri
TO: ALL FAMILY SUPPORT OFFICES
FROM: KIM EVANS, DIRECTOR
SUBJECT: RETIREMENT ACCOUNTS AS AN AVAILABLE RESOURCE FOR MO HEALTHNET FOR THE AGED, BLIND, AND DISABLED (MHABD) AND BLIND PENSION (BP)
MANUAL REVISION #43
DISCUSSION:
Retirement accounts are an available resource to an MHABD or BP participant if the funds can be accessed by the individual. This includes funds held in an IRA, 401, 403, Keogh, pension, or deferred compensation plan, even if there is a penalty.
The amount held in the account, less any penalty required for early withdrawal, is an available resource. Taxes withheld are not excluded from the value.
EXAMPLE: Mr. Banks has an IRA with a balance of $100,000.00. He reports he can’t access the funds in the account until he retires. Upon review, it is discovered Mr. Banks can access the funds with a 10% penalty for any withdrawals prior to retirement. There will also be a 15% withholding to pay taxes due for the withdrawal. The IRA ($100,000.00) less the early withdrawal penalty ($10,000.00) is an available resource to Mr. Banks ($90,000.00). The $15,000.00 withheld to pay taxes is not excluded.
IRA, 401(k), 403(b), Keogh, pension, or deferred compensation plan accounts belonging to the parent of a disabled child are not considered a resource for the disabled child, even if they are available to the parent. See 1025.015.07.05 Retirement Accounts Belonging to the Parent of a Disabled Child for more details.
The portion of retirement accounts funded by earnings received while an individual was receiving Medical Assistance for Working Disabled (MA-WD) is not an available resource until the individual turns age 65. Any remaining balance is a resource, if the individual has access to the funds. See 1025.015.09 Retirement Accounts Belonging to a Former MA-WD Participant for more details.
See Retirement Accounts User Guide for instructions for entering accounts into FAMIS.
NECESSARY ACTION:
- Review this memorandum with appropriate staff.
- At each reinvestigation, review all IRA, 401, 403, Keogh, and pension plans to determine if they are correctly coded and if accessibility has changed.
- Enter necessary changes to FAMIS screens to indicate accessibility of the funds.
- Enter a comment on the Liquid Resource screen to explain accessibility and how access was verified.
ATTACHMENTS:
- Retirement User guide
KE/vb