Glossary I-words (MAM)

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Inaccessible Resources - Resources not legally available to the individual, when resources are counted in the eligibility process for the program of assistance.

Income - Cash payments or in-kind benefits which are regular and recurring, or which are treated as available for use regardless of actual receipt, e.g., deemed income.

Income-in-Kind - Goods, commodities, or services (such as meals, clothing, lodging) provided as a contribution or compensation for work instead of cash.

Individual Income - All available income received on behalf of or by one person.

Individual Retirement Account - A trust or custodial account set up in the United States for the exclusive benefit of the employee or beneficiary. Also referred to as a Traditional IRA, this financial device allows an individual to make tax-free contributions. All interest, dividends, and capital gains are not subject to tax while they are in the account; however, disbursements from the account are taxed as income. A Traditional IRA is created by a written document that must show that the account meets the following requirements:

• the trustee must be a bank, federal insured credit union, savings and loan association, or an entity approved by the IRS to act as trustee or custodian;

• with the exception of rollover contributions, there is an annual maximum on contributions;

• contributions must be from wages, salaries, commissions, self-employment income, alimony, or separate maintenance, or nontaxable combat pay;

• at all times the employee must have a nonforfeitable right to the amount;

• the assets of the trust cannot be commingled with other property except in a common trust fund or common investment fund (this does not apply to Deemed Individual Retirement Accounts under a Qualified Employer Plan);

• the account cannot be used to buy a life insurance policy; and

• distributions must begin the year following the year in which the employee reaches 70. However, distributions can occur before the individual reaches 70.

Individual Retirement Annuity - A financial device or endowment contract issued by a life insurance company that meets the following requirements:

• is issued as non-transferable, such that the owner and/or beneficiaries are the only ones who can receive the benefits or payments;

• the entire interest in the contract must be nonforfeitable;

• there is an annual maximum on contributions;

• does not allow fixed premiums;

• refunded premiums must be used to pay future premiums or buy more benefits before the end of the calendar year after the year in which the refund is received;

• distributions must begin the year following the year in which the owner reaches age 70. However, distributions can occur before the individual reaches 70;

• in the event that the owner dies during the distribution period, the remaining interest must be distributed at least as rapidly as if the owner were still alive; and

• in the event that the owner dies before the onset of distribution, then the entire interest of the owner must be distributed within 5 years of the owner's death. If a portion of the owner's interests is payable to a designated beneficiary, distributions will begin no later than 1 year after the owner's death and must provide for equal payments over the beneficiary's life. If the beneficiary is a surviving spouse or child the initiation of the benefits must not begin earlier then the date the owner would have attained age 70.

Immediate Family Member – a spouse, child, mother-in-law, father-in-law, parent, step-parent, step-children, step-siblings, grandparents, grandchildren, siblings, legal guardians, daughter-in law, son-in-law, brother-in-law, sister-in-law, or foster child.

Institutionalized individual - For purposes of asset transfers, an individual who is an inpatient in a medical institution and with respect to whom payment is based on a level of care provided in a nursing facility, or who is a home and community-based services applicant or recipient.

Irrevocable Trust - A trust which cannot in any way be revoked by the grantor.