Retirement Accounts
Retirement accounts (g) are not countable. The accounts contain funds in a plan or contract that meets the requirements as described in one of the following sections of the Internal Revenue Code of 1986:
●Section 401(a), which includes funds commonly known as “tax qualified retirement plans,” including 401(k) and other plans, such as:
Cash Balance Plan
Employee Stock Ownership Plan
Keogh Plan
Money Purchase Pension Plan
Profit-Sharing Plan
Simple 401(k)
●Section 403(a), which includes funds that are similar to 401(a) plans but are funded through annuity contracts
●Section 403(b), which includes tax-sheltered annuities, custodial accounts, and retirement income accounts retirement plans for some employees of public schools and tax exempt organizations
●Section 408, which includes traditional Individual Retirement Accounts and traditional Individual Retirement Annuities (IRAs)
●Section 408A, which includes plans commonly known as “Roth IRAs” (including the “myRA”);
●Section 457(b), which includes plans commonly known as “eligible deferred compensation plans” for employees of state or local government or tax-exempt entities
●Section 501(c)(18), which includes plans funded by employee contributions
●Funds in the Federal Thrift Savings Fund within the meaning of that term as used in section 7701(j) of the Internal Revenue Code of 1986 as defined by 5 U.S.C. 8439
●Any other retirement plan or arrangement that is designated as tax-exempt under a successor or similar provision of the Internal Revenue Code of 1986
●Any other retirement account determined by FNS to be appropriate for exclusion
NOTE When an early withdrawal occurs, deduct the early withdrawal penalty and count the remainder as a resource on LIAS.
Key the MR Financial Account Code on FIAC for retirement accounts, plans, or funds.