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Going to read deeply into these handbooks (again).
Do you know off the top of your head if they count interest from retirement accounts towards income? I'm thinking so because of the below:
"Balances in specifically designated retirement funds and college savings accounts are not subject to the asset limit, but are counted toward overall assets and income from assets.’"
I think it depends on what you have inside the retirement accounts. If you have the money you have in there is invested in mutual funds or stocks, you don't have income on those unless you actually sell, so there would be likely be no impact unless you're actively trading. If you have say a CD in the account that matures and interest is actually paid into the account, that might be counted as income. I don't think there is a catch all answer, it depends on your situation.
In my case, any account that I received a 1099-INT or a 1099-DIV, that income was added to my other income sources. In my case, I did not receive any 1099s for my retirement accounts.
(Note the exemption on retirement and education accounts not mentioned.)
‘ Assets: Assets are items of value that may be turned into cash. A savings account is a cash asset. The bank pays interest on the asset. The interest is the income from that asset. Other examples: stocks, bonds, mutual funds, money market accounts. See Interest from Assets, below, for more information.’
‘ Interest from Assets: If you go to an interview, the people interviewing you will calculate your interest income from assets like bank accounts and other investments. If all of your assets are worth less than $5,000, the interest they earn is added to your income. If all of your assets are worth more than $5,000, either the interest they earn or 0.06% of their value is added your income, whichever amount is greater.’
Seems convoluted to say the least! I’ll have to dig more but am sensing I may barely exceed asset limits. Trying to navigate and avoid just being ineligible!
Thoughts on if I should 1) let things play and have my application reviewed as is, 2) transfer the non-retirement assets if rejected prior to writing an appeal, 3) contact the file analyst to ensure it's clear I am below the asset limit when you account for my retirement accounts via the ”comments” section on my application or email him/her directly.
Location: Read the Marketing Handbook, and Income a Guide.
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Quote:
Originally Posted by scorpeo9
Seems convoluted to say the least! I’ll have to dig more but am sensing I may barely exceed asset limits. Trying to navigate and avoid just being ineligible!
Thoughts on if I should 1) let things play and have my application reviewed as is, 2) transfer the non-retirement assets if rejected prior to writing an appeal, 3) contact the file analyst to ensure it's clear I am below the asset limit when you account for my retirement accounts via the ”comments” section on my application or email him/her directly.
How near do you think you are to getting a unit? Being asked to submit paperwork is not a lock on getting a unit even if you qualify down to the last detail.
Before submitting application, you might consider transferring some funds to a qualified retirement or education account to make it obvious you are under the asset limit. Yes, your liquid funds are reduced but it’s still your money and we hope you get to retire one day. If you are near a certain age (59?) the rules for making withdrawals are much less of a burden, penalties and payments go away I think.
Is there a trusted loved one outside your household you would consider making a tax free cash gift to? Maybe, this could be a work around.
See if you can determine the new Asset Cap limit. Contact elected representatives for constituent service. Perhaps your member of Congress as this involves U.S. HUD.
I’ve submitted my paperwork and am 35 so not close to retirement.
I only thought of the asset limit after submitting my paperwork which is why I’m thinking ”gifting” the funds to my sister would’ve been the better bet.
Assuming its too late to withdraw and resubmit my application (?) I’m considering still transferring the assets and adding a note in the comments and following up with the file analyst. Their info is available on the application.
I know it’s no guarantee but the things I can control I’m hoping to have buttoned up and really hope for the best.
I was a teacher for 12 years in NYC and can barely afford to live here. Hanging on by a thread so this would be truly life changing. Appreciate all your help!
Location: Read the Marketing Handbook, and Income a Guide.
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I suspect withdrawing is not a good step. At some points in the process it ends the process entirely. Maybe that is not so with income paperwork particularly if it’s about corrections.
See if you can get someone in government to tell you what the ‘new’ asset limit is. This could be useful if you have to appeal. If you are in the teacher’s union maybe there is a resource there.
If it is life changing, and that means financially too, then putting more funds into qualified accounts to get you through the door seems very worth it. Once you are inside, you can use the money you’re saving on housing costs to restore your liquid funds over time. Likely, the housing cost increases will be modest over the renewals.
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