7 AAC 100.140 - Pension plan as an exempt resource

(a) Except as provided in (b) of this section, a pension plan and an employment-related retirement plan is an exempt resource if the applicant or recipient

(1) cannot immediately withdraw and use the money in the pension plan to meet the needs of the applicant's or recipient's family;

(2) demonstrates that the applicant or recipient has applied to have money in the pension plan made available to the applicant or recipient; and

(3) does not expect to receive the money during the month for which eligibility is being determined.

(b) Unless exempt under (a) of this section, the value of the following pension plans and employment-related retirement plans of an employed applicant or recipient, less the penalty for early withdrawal if applicable, is a nonexempt resource:

(1) the cash value of any pension plan if the applicant or recipient no longer works for the employer that established the pension plan, and is not yet eligible for periodic payments under that plan, but has the option of withdrawing the money in that plan as a lump sum;

(2) money in an account established under 26 U.S.C. 401(a) (Keogh plan), or a substantially similar account, or under 26 U.S.C. 408 (Individual Retirement Account (IRA)) or 26 U.S.C. 408 A (Roth IRA), or a substantially similar account;

(3) money in a deferred compensation plan established for purposes of 26 U.S.C. 457 and offered by an employer if the applicant or recipient

(A) no longer works for the employer that established the deferred compensation plan; and

(B) has the option of withdrawing the money as a lump sum.

Notes

7 AAC 100.140

Eff. 7/20/2007, Register 183

Authority:AS 47.05.010

AS 47.07.020

AS 47.07.040