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I agree with Moving415. Definitely apply for housing and move your savings into other accounts and leave enough for emergencies. Let's be honest here, we are not talking about large sums of money where you can use it as down pymt for a condo. If you happen to lose your job to support a family, these funds will be diminished in less than a year.
If you have time, read up on the 50+ pages of the guideline. You should be able to get a better understanding of the process.
They're not "less valid." With a Roth, you're using taxed money, and you don't pay taxes on withdrawals. With traditional IRAs, you get a tax break on contributions (which can lower your tax bill considerably), but you pay tax on withdrawals, which are mandatory after age 70. These distinctions make no difference for the HPD asset limit -- they're both retirement accounts that are exempt from the cap. A detailed discussion of the differences is for another thread.
I am retired with some money in the bank. This money is to pay for my retirement.
Why should this money be considered differently from money in an IRA, regular or Roth, a 401K, an annuity, or any other pension accumulation?
I agree with Moving415. I think because you don't have to use that money for retirement. It's unrestricted.
I believe that retirement accounts are often/usually given special treatment. For instance, in cases of bankruptcy or a judgment against the person in a lawsuit, retirement accounts are protected.
Similarly, 529 accounts for college expenses aren't included in the asset cap either.
These housing programs are for the working poor with no or low assets. You can make the case that a low-income person can scrimp and save, and manage his or her money well, and make sacrifices in order to build a bank account. You could also observe that these housing programs seem to reward the opposite behavior. I can see the logic in that.
But I also see that the low-income person with a substantial bank account is the exception, rather than the rule.
Last edited by macnyc2003; 10-13-2016 at 09:08 AM..
Logic doesn't exactly rule in affordable housing decisions. If you're getting turned down because of the asset cap, make the argument you made above. If you're under 70 years old, you can still move money into an IRA. It's easy.
Last edited by Moving415; 10-14-2016 at 09:46 AM..
Logic doesn't exactly rule in affordable housing decisions. If you're getting turned down because of the asset cap, make that argument. If you're under 70 years old, you can still move money into an IRA. It's easy.
That ship has sailed. For me its moot, I have made my last move unless we decide on a nice 3 bedroom joint on 2 acres in the boonies somewhere, but that's not likely to happen. But I like to help others with info when I can so I try to keep up.
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