23 Miss. Code. R. 103-3.13 - Treatment of Excluded Funds Co-Mingled with Non-Excluded Funds

A. Otherwise excludable funds must be identifiable in order to be excluded.

B. This does not require them to be separate from other funds (such as in a separate bank account).

C. When withdrawals are made from co-mingled funds, the assumption is non-excludable funds are withdrawn first, leaving as much of the excluded funds in the account as possible.

D. If excluded funds are withdrawn, the excluded funds left in the account can only be added to by deposits of subsequent funds excluded under the same provision and excluded interest

E. Example: An individual deposits an $800 retroactive RSDI check in a checking account. The account already contains $300 in non-excluded funds.

1. Of the new $1,100 balance, $800 is an excluded retroactive RSDI payment;

2. The individual withdraws $300. The remaining $800 is still excluded;

3. The individual withdraws another $300, leaving the $500 balance excluded;

4. The individual deposits $500, creating a new $1000 balance. Only $500 of the new balance is excluded.

F. Example: An individual deposits $200 in excluded funds in a non-interest bearing checking account that already contains $300 in non-excluded funds.

1. The individual withdraws $400. The remaining $100 is excluded;

2. The individual then deposits $100 in non-excluded funds. Of the resulting $200 balance, $100 remains excluded;

3. The individual next deposits $100 in excludable funds. Of the resulting $300 balance, $200 is now excluded.

Notes

23 Miss. Code. R. 103-3.13

Social Security Act §1902 (r) (2); 42 CFR §435.601(b) (Rev 1994).