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I just got disqualified because they used my 401k as income, even though I am not yet retired and am not, nor have I ever, withdrawn any funds from it. I'm pretty sure that this is wrong, but good luck to me in disputing it.
Their argument was that I have "access" to it. Sure, but that would be access with a ten percent penalty right off the bat, in addition to added tax penalties, which they did NOT take into consideration with their calculations. It's a very stressful process because the "income" calculation seems to vary from one person to another.
This really seems wrong to me. The 401(k) should be seen as savings, not income. Plus, this policy could constitute discrimination against older people. I would try to appeal. You have nothing to lose. Let them show you in writing the guideline that says they can do this. Try to get your local assembly person involved if necessary.
Edited to add: I just found this in the HPD guidelines PDF:
The tenant must not have assets in an amount equal to or greater than $250,000 (*Note: This does not include specifically designated retirement funds. A portion of retirement accounts may be counted to determine overall assets and income from assets, but such funds are not to be included in the $250,000 cap.)
They still use a portion of savings as "income", they use a .06 multiplier. So if you have 30,000 in savings, they would add $180.00 - or your actual interest rate, whichever is higher - to your income.
i've qualified for lotteries before and went through the process and was told by several people that your retirement -whether it's 401k or IRA - is NOT included in the calculations unless you are withdrawing from it. i've seen mixed things about it on the internet. But the woman who I met with said since my retirement was rolled over to a 401k, i have access to it that I wouldn't have were it still with the company (IRA), so therefore they have to take .06% of it and add to my income. I don't see ANYTHING that says a 401k should be treated differently than an IRA. So, it's frustrating, because I don't see where the people who make the calculations are all on the same page with the policies, and the policies are not exactly transparent to us.
I had a low log number and a mobility preference and really could've used the space. It's hard for me to maneuver in tight spaces. Oh well.
Sorry to hear you got disqualified, The whole s process is stressful due to income calculations variations and lack transparency, IMHO. When did they send you the letter stating that you didn't qualify. How long did it take to get the letter. I was told it takes 30 to 45 days. I am still waiting to hear from them. I am so anxious, and stress out.
Wish you luck in your appeal, don't give. I read somewhere in another thread that a lady dispute her disqualification and got the apartment. There is still hope.
Quote:
Originally Posted by sydney44
I just got disqualified because they used my 401k as income, even though I am not yet retired and am not, nor have I ever, withdrawn any funds from it. I'm pretty sure that this is wrong, but good luck to me in disputing it.
Their argument was that I have "access" to it. Sure, but that would be access with a ten percent penalty right off the bat, in addition to added tax penalties, which they did NOT take into consideration with their calculations. It's a very stressful process because the "income" calculation seems to vary from one person to another.
Last edited by Maya825; 04-25-2016 at 08:43 PM..
Reason: grammar
I just got disqualified because they used my 401k as income, even though I am not yet retired and am not, nor have I ever, withdrawn any funds from it. I'm pretty sure that this is wrong, but good luck to me in disputing it.
Their argument was that I have "access" to it. Sure, but that would be access with a ten percent penalty right off the bat, in addition to added tax penalties, which they did NOT take into consideration with their calculations. It's a very stressful process because the "income" calculation seems to vary from one person to another.
Hi Sidney,
I have a question. Did they ever asked you to send more pay stubs weeks later after your interview? They just asked me for more and I don't know why. Thank you for your time.
They asked me to provide addit pay studs after my interview for a total of six paystuds, then they get a projected income, and take the highest of all your income. Meaning your income from last year tax return its worthless, at least for Related. I got disqualified because my projected income for this year is going to be over.That is unfair , I can change to part time status at my employment. Projected income should be use to assure you can pay the rent, not to disqualify an applicant.
And as I type this there is people complaining to the city council to lower the income requirements. You might as well be living in the street and unemployed or be a season worker picking up apples upstate. It feels as you are been penalized for achieving higher education, or for working harder. It truly is a war on the middle class. And I do not have 401K, no savings, no stocks, no property, zero, zip, zillch, nada, just over 60K in student loans. At least I am done with hoping , and I can now continue on the rat race.
Quote:
Originally Posted by Rog caval
Hi Sidney,
I have a question. Did they ever asked you to send more pay stubs weeks later after your interview? They just asked me for more and I don't know why. Thank you for your time.
They asked me to provide addit pay studs after my interview for a total of six paystuds, then they get a projected income, and take the highest of all your income. Meaning your income from last year tax return its worthless, at least for Related. I got disqualified because my projected income for this year is going to be over.That is unfair , I can change to part time status at my employment. Projected income should be use to assure you can pay the rent, not to disqualify an applicant.
And as I type this there is people complaining to the city council to lower the income requirements. You might as well be living in the street and unemployed or be a season worker picking up apples upstate. It feels as you are been penalized for achieving higher education, or for working harder. It truly is a war on the middle class. And I do not have 401K, no savings, no stocks, no property, zero, zip, zillch, nada, just over 60K in student loans. At least I am done with hoping , and I can now continue on the rat race.
That's totally unfair. I'm so sorry you got disqualified. Really am!
So, they projected that you would make more money than you made last year? Were rejected by Related or by the city? I don't like that they asked me more pay stubs after I already gave them 6...
Thank you for your response.
They ask for more pay stubs if the process is taking a while and the pay stubs you provided already get "old." The city requires new documentation after 120 days. You may have to hand in more-recent bank statements too.
Truly, you cannot consider the apartment yours until you have the keys in your hand and are unlocking the door. You can be disqualified at any time prior to that.
Last edited by macnyc2003; 05-03-2016 at 04:19 AM..
Roj - nope wasn't asked for additional pay stubs. I am on SSDI, so my "income" wouldn't fluctuate...
Maya - I'm sorry. It's a strange process. My "income" firmly is within the low income standards, but I get penalized for having a 401k, which I don't touch, and savings. I no longer have to do income taxes, as I make too little, but the last time I did, my income was "negative", as I itemized my medical expenses. In other words, I take money out from my savings every month to live off of and try to help with medical care and in reality I am "negative income". But for the lottery reality, I am "over" income. it's a discouraging process and can truly be arbitrary. But don't give up. You just have to keep applying and get on waiting lists and hope that one day the numbers, and the person calculating them, will work in your favor...
Roj - nope wasn't asked for additional pay stubs. I am on SSDI, so my "income" wouldn't fluctuate...
Maya - I'm sorry. It's a strange process. My "income" firmly is within the low income standards, but I get penalized for having a 401k, which I don't touch, and savings. I no longer have to do income taxes, as I make too little, but the last time I did, my income was "negative", as I itemized my medical expenses. In other words, I take money out from my savings every month to live off of and try to help with medical care and in reality I am "negative income". But for the lottery reality, I am "over" income. it's a discouraging process and can truly be arbitrary. But don't give up. You just have to keep applying and get on waiting lists and hope that one day the numbers, and the person calculating them, will work in your favor...
Thank you for your genuine empathy and kind words. Yes, they projected that I will be making more this year. I was rejected by Related. I provided a total of 6 pay stubs. My coordinator she was very professional and she explain to me, over the phone how the calculate, and I appreciated her taking the time to explain. Good luck for those still getting verified and I am happy for those that make it. Having an affordable apartment can have a positive change in someone's life.
Thank you once again for been so sweet.
Quote:
Originally Posted by Rog caval
That's totally unfair. I'm so sorry you got disqualified. Really am!
So, they projected that you would make more money than you made last year? Were rejected by Related or by the city? I don't like that they asked me more pay stubs after I already gave them 6...
Thank you for your response.
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