EMPLOYEE RETIREMENT PLANS SR 01-28, 10/01 (FSM-A)

An employee retirement account or plan set up by an individual for retirement purposes.

Treatment: Excluded Resource

Exceptions:

• Individual Retirement Account (IRA)

Individual retirement accounts (IRA’s) are tax-sheltered accounts set up by an individual for retirement purposes.

Treatment: Countable Resource. Deduct any penalty for early withdrawal; the balance is a countable resource.

• Keogh Plans

- Non-contractual Keogh Retirement Plans are tax-sheltered accounts set up by an individual for retirement purposes.

 Treatment: Countable Resource. Deduct the penalty for early withdrawal and count the remainder as a resource.

- A contractual Keogh Plan is a tax-sheltered account set up by an employer that does not allow the employee to withdraw any money.

 Treatment: Excluded Resource