Title 7 . Health and Social Services

Chapter 45 . Hearings

Section 301. Pension plan as an exempt resource

7 AAC 45.301. Pension plan as an exempt resource

(a) The cash value of a pension plan of an employed applicant or recipient, other than an account or deferred compensation plan listed in (b) or (c) of this section, is

(1) an exempt resource if the applicant or recipient

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

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

(C) does not expect to receive the money during the month for which eligibility is determined;

(2) is a nonexempt resource 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.

(b) 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. 408A (Roth IRA), or a substantially similar account, is a nonexempt resource.

(c) Money in a deferred compensation plan established for purposes of 26 U.S.C. 457 and offered by an employer is a nonexempt resource if the applicant or recipient

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

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

History: Eff. 1/7/2005, Register 173

Authority: AS 47.05.010

AS 47.27.005