Asset Limt

[mathjak107]

i just explained it . those assets that you own that you are drawing nothing from are calculated with an implied income off asset value .

so if you have 50k in earned income , 20k in other sources of actual income and 500k in retirement money or college savings , then that 500k x .06% = 300 bucks in income added in to the 70k .

it is a way of counting assets that are not yet providing income .

[NeedsAnApartment]

There are two issues that many people on this thread are using interchangeably when they are two completely different concepts:

1. ASSET INCOME - Which would count toward your income. I understand that part. It would be .06% of the amount in my 457(b) account. So if I have $100,000 in my 457(b) account, that would add $60 to my income. I am not concerned about this part.

2. ASSET LIMIT - Which is a limit that one cannot exceed. I know a bank account balance is an asset. My original question was, and still is, does my 457(b) balance count toward the asset limit??? So if the asset limit is $110,000 let’s say and I have $50,000 in my bank account and $100,000 in my 457(b) account then I would have $50,000 in assets if my 457(b) is not counted toward the asset limit and I’d be below the $110,000 asset limit. But if my 457(b) balance is also counted toward the asset limit that would make my assets worth $150,000 and that would bring me above the asset limit.

Can someone please just let me know about the ASSET LIMIT and if my 457(b) balance is counted toward the asset limit. I understand about income derived from assets (see Number 1, above)???

Additionally what the hell does “Balances in specifically designated retirement funds and college savings accounts are not subject to the asset limit, but are counted toward overall assets” mean???

It reads as if it DOESN’T count toward the asset limit BUT IT IS counted???

What the hell does that mean????

[mathjak107]

the asset limit is 5000 dollars . anything over 5k in assets is counted , so either the actual income you take is counted on everything above or the implied income is calculated , so yes your 457b counts and is over the limit if that plus all assets are more than 5k .

once you are over the 5k anything over in assets is subject to that income conversion and an implied income is used and added to your other income

[NeedsAnApartment]

You’re still not understanding it.

I understand that the $100,000 in my 457(b) counts as income from an asset using the formula of .06% times $100,000 which amounts to $60. That $60 would be added to my INCOME. So if my gross income was $70,000 then my income would be counted as $70,060. This is not the question.

There is a separate aspect that is called an ASSET LIMIT which means that your total assets cannot exceed a certain amount, let’s say that limit is $110,000. Does my 457(b) count toward this asset limit, just like a bank account balance.

ASSET LIMIT is what I’m asking about. It has nothing to do with the “over $5000 asset gets counted as income by using the formula of .06% of the amount of the asset.” ASSET LIMIT is what I’m asking about and if my 457(b) counts toward the ASSET LIMIT.

ASSET LIMIT.

[mathjak107]

where do you see an amount designated as an asset limit other than 5,000.00 , i don't see one . i only see an asset limit of 5k for purposes of being counted as income . i see no such other limit for owning assets

[wiivile]

I reiterate what I said earlier. 457(b)'s are not counted toward the asset limit.

HUD is irrelevant here. The asset limit is purely a city thing. The city goes by HUD rules for calculating income, but the asset limit is something created by the city. If you want confirmation and don't believe me, call HPD at 212-863-7990, as they are the ultimate authority on this.

[NeedsAnApartment]

Wiivile I believe you.

Some other people on this thread were confusing me by talking about income from assets, which I understand counts toward income and adds up to a bucket of nothing.

Maybe you can explain what the hell “Balances in specifically designated retirement funds and college savings accounts are not subject to the asset limit, but are counted toward overall assets”mean???

It reads as if it DOESN’T count toward the asset limit BUT IT IS counted???

Can you explain what that means?

Mathjak107: Every affordable housing listing states that “Asset Limits Apply.” The asset limit is defined as the maximum income for a four-person household in your Area Median Income (AMI) for the apartment you qualify and are applying for. For instance, the maximum income for the 110% AMI for a four-person household on one posting I’m looking at is $104,940. This means if you qualify for an apartment in that AMI, your ASSETS cannot be greater than $104,940.

[wiivile]

Originally Posted by NeedsAnApartment

Wiivile I believe you.

Some other people on this thread were confusing me by talking about income from assets, which I understand adds up to a bucket of nothing and counts toward income.

Maybe you can explain what the hell “Balances in specifically designated retirement funds and college savings accounts are not subject to the asset limit, but are counted toward overall assets”mean???

It reads as if it DOESN’T count toward the asset limit BUT IT IS counted???

Can you explain what that means?

They calculate your total "overall assets" in order to calculate your income from assets. That is what it means.

[NeedsAnApartment]

Ah. That’s what I assumed. It’s poorly worded.

Thank you all, specifically Wiivile, for your input!!!