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Food Stamp Program

Retirement (Pension) Plans

The following summary of  policy on retirement plans is distilled from Food Stamp Program rules, and interpretations sent to FNS regional offices over time.  There is a $2000 limit on the resources that a household may have and still receive food stamps.  The limit is $3000 for a household with an elderly (age 60 or older) or a disabled member.  We count cash and savings as resources, but generally exclude retirement plans from resources.

 Recently we have received a number of questions about the excludability of various retirement (pension) plans.  We believe that such questions stem from the fact that many formerly employed individuals are applying for food stamp assistance because of the economic downturn.  The following are general guidelines used in determining the exclusion or inclusion of pension plans as a resource.

In general, Food Stamp regulations provide that the following types of retirement savings and pension plans are excluded from consideration as a resource:

  • 457 plans (plans for State and local governments and other tax-exempt organizations);
  • 401(k) plans (generally a cash-or-deferred arrangement and generally limited to profit-making firms);
  • Federal Employee Thrift Savings plan;
  • Section 403(b) plans (tax-sheltered annuities provided for employees of tax-exempt organizations and State and local educational organizations); and
  • Section 501(c)(18) plans (retirement plans for union members consisting of employee contributions to certain trusts that must have been established before June 1959); and
  • Keogh plans that involve a contractual obligation with someone who is not a household member

The Food Stamp regulations provide that the following types of retirement savings are included as a resource, regardless of whether there is a penalty for early withdraw:

  • Keogh plans that involve no contractual obligation with anyone who is not a household member;
  • Individual Retirement Accounts (IRAs); and
  • Simplified Employer Pension Plans (SEPs) (which are considered to be IRAs).

 If the cash value of an excluded type of plan is rolled over into an IRA, the cash value loses its exclusion and becomes an included resource following the roll-over.


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    Accessibility | Privacy/Security | Nondiscrimination | USDA Last Modified: 09/25/2002