Are SEP-IRAs and ROTH IRAs considered "pensions"?

[Guest pineapple1]

Are SEP-IRAs and ROTH IRAs considered "pensions"? I ask because I'm trying to meet the qualifications for Connecticut's ConnPace drug assistance program. I won't qualify if I have a "pension". I'm 38 years old and I have a small amount of money in two IRA accounts which I do not draw from yet. Previous to not working, I was always self-employed. The people who answer the phone at ConnPace are kind, but did not know the answer to this simple question.

[QDROphile]

The answer is entirely within the standards of that program. "Pension" means what the program says it means; there is no generally ageed upon meaning of "pension." The program may look outside its own terms for a defintion, but the programs terms would provide for that. It is also possible the the program has not settled on all points of meaning. You will be extremely lucky if anyone who uses this board has familiarity with the program. If you can't get anyone in the program to answer your question, take the position that you do not have a pension, but any time you communicate or fill out any form, DISCLOSE, DISCLOSE, DISCLOSE that you have the IRAs. Disclose even when the communication or form does not ask about pensions. Draw stars at the disclosure. In your disclosure, include that you have asked program personnel about the IRAs, but no one would answer. Keep copies of the documents with the disclosure. Governments have a habit of trying to recoup overpayments in 20-20 hindsight, even when they had active blindness in the beginning.

[John G]

QDRO, I would go with NO, I DON'T HAVE A PENSION. While it would be useful to find out if this plan has a definitions section, and you raise some good cautions, common usuage of the word pension would be for a program that was employer based. I have no familiarity with this CT program, but it is odd that they would not ask about home equity, IRA, Roths, etc. if they truly meant it to have a rigorous means test.

I also note that this person is 38 but has not explained if there is a disability or unemployment issue. Its not real common for someone age 38 to have a pension.

[Kirk Maldonado]

Why take any unnecessary chances?

There is probably an application form that you will need to fill out to qualify for those benefits. Read the form and the instructions (if any). That may answer your question. Even if it doesn't, it may refer to the statutory language that defines the term "pension" for this purpose.

The statutory provisions regarding this issue can probably be found online. Spend some time on Google and you'll probably be able to find out what is the exact statutory language. The statute may provide some guidance on this issue. Even if it doesn't, doing this online search won't cost you any money and will probably only take a few minutes.

If the statutory language isn't of any help, check to see if you can find the legislative history of the statute online. There may be some language in some committee report that explains what the state legislature meant when they referred to "pension."

[david rigby]

This is the program: http://www.cga.ct.gov/2004/rpt/2004-R-0843.htm

This is the application: http://www.cga.ct.gov/2004/rpt/2004-R-0843.htm

See “Income” starting on page 3. It seems the posted question is not answered by the instructions on this form, but this cannot be the first time anyone has asked it.