Assets - "Liquid" 415-25-10-10-05

(Revised 10/1/15 ML #3453)

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"Liquid asset" is defined as any resource which can readily be converted to cash, and includes cash on hand, checking accounts, savings accounts, stocks (See415-25-10-45), bonds, pension plans (including Individual Retirement Accounts (IRAs), Keogh plans, and Simplified Employer Pension Plans (SEPs)), Individual Indian monies, and other negotiable instruments. Note that certain large deposits designated for future living expenses may temporarily distort the liquid assets (#8).

 

To arrive at the countable cash value for any account or plan that imposes penalties for early withdrawals, subtract the amount of the penalty (if any) from the value of the account or plan.

 

"Liquid Assets" NOT Counted:

1. Cash surrender and loan values of life insurance. NOTE that if a life insurance policy is cashed in, proceeds are NOT considered income. Instead, it is treated as a conversion of an asset, and only those proceeds which have been converted to a countable asset will be counted (as an asset).
2. Annuities or other pension plans as long as the money remains in the pension fund.

These include but are not limited to::

• State Retirement
• Teachers Retirement
• 457 plans
• 401(k) plans
• Federal Employee thrift savings plan
• 403(b) Plans, and
• 501(c) (18) plans
• Keogh plans
• Individual Retirement Accounts (IRAs)
• Simplified Employer Pension Plans (SEPs)

Monthly or regular payments from the pension fund made according to the plan or lump-sum withdrawals from an IRA, Keogh plan, annuity, or similar instrument will be treated as a source of income (See 415-25-05-20-20, Other Income). To arrive at the countable income, the amount of the penalty (if any) should be deducted from the gross disbursement amount.

However, a one-time payout of all funds in the pension or annuity is considered a conversion of an asset (See 415-10-25-30, Conversion of Assets).

3. Savings resulting from earnings plus up to $250 resulting from gifts or other sources of each dependent child under age 19 who is still in elementary or high school.
4. The following loans held as liquid assets provided they are held in a separate account:
5. Business/farm operating loans for the current operating year only
6. Student loans for the current school year only

5. Per capita payments to Native Americans will NOT be counted indefinitely, as long as they are held in a separate account. If they are commingled with other funds, they will NOT be counted for six months from the date they are commingled, then counted as an available asset.
6. Payments received under the Civil Liberties Act of 1988 by American-Japanese citizens displaced during World War II. (Public Law 100-383, section 105 of Title I)
7. Payments received under Public Law 101-201, section 1(a) and P.L. 101-239, section 10405 regarding Agent Orange settlements.
8. Periodic or annual current income that exceeds a single month and is held in a liquid asset for future monthly living costs. This includes payments from benefit or fund raisers that are held in accounts that are not commingled with other household accounts.
9. Payments received under the Aleutian and Pribilof Islands Restitution Act, Public Law 100-283, Section 206 of Title II for restitution made to Aleuts who were relocated by the U.S. government during World War II.
10. Payments made for major disaster and emergency assistance under the Disaster Relief and Emergency Assistance Amendments of 1988, Section 105 of Public Law 100-707 (45 USC 5141 et seq.).
11. Any amount necessary for the fulfillment of a Plan for Achieving Self-Support (PASS) under Title XVI of the Social Security Act (SSI) will NOT be counted as an asset to the household.
12. Payments made to volunteers including VISTA volunteers under the Domestic Volunteer Service Act of 1973 (42 USC 5044(9)(i)).
13. Payments received under Public Law 103-286, Subsection 1(a) from a foreign government for restitution made to victims of Nazi persecution.
14. Income acquired during a month cannot be considered as an asset in the same month.
15. Tools, machinery, and vehicles necessary to produce income.  
16. Exempt assets as a result of Alaska Native Claims Settlement Act.
17. 529 Qualified Tuition Program Plans and 530 Coverdell Education Savings Accounts. In North Dakota, 529 Program Plans are administered through the Bank of North Dakota and are called College Save.

These funds remain exempt as long as they are used for the intended purpose at the time withdrawn. If withdrawn and not used for the intended purpose, they are considered income in the month withdrawn and an asset in the month following the withdrawal.