I wanted to know if people who get food stamps are allowed to have a bank and savings account? Will they be able to save by having a Roth IRA? Will they get penalized for having those accounts? They lose money going to the corner store and currency exchange. I want to help a mother in this situation. Please help.
2007-01-27 15:27:12 · 6 answers · asked by mecca2lux 1 in Business & Finance ➔ Personal Finance
No checking accounts, no savings accounts, no retirement accounts. Automobile, jewelry and household possessions combined can not equal more than 500.00.
2007-01-27 15:36:50 · answer #1 · answered by Eva 5 · 0⤊ 0⤋
For food stamps, you can have no more than $2000 in resources- which can be a savings/checking account, IRA, etc.
If a retirement plan is in place that the recipient cannot access (the employer won't allow)- then that is exempt. Houses are exempt. Cars are exempt up to the value of $4650.
If one has an individual retirement account, the amount that would be left over after a penalty for withdrawing early is counted against the resource limit.
I posted the link to usda information (who regulates the food stamp program) and I know in TEXAS the resource limits are higher (unless the link has outdated policy).
http://www.fns.usda.gov/fsp/applicant_recipients/fs_Res_Ben_Elig.htm
2007-01-27 23:34:34 · answer #2 · answered by TRAC 2 · 4⤊ 0⤋
Each state have certain income guidelines depending on the individuals situation.
Check out this website regarding the USDA Food Stamp Program: http://www.fns.usda.gov/fsp/
You may want to consider contacting the local Dept. of Social Services in her area to inquire.
She may need to go in and speak with a social worker if she does not get her questions answered over the phone.
Hope this helps.
God Bless.
2007-01-27 23:36:16 · answer #3 · answered by ye 4 · 0⤊ 0⤋
Of course they can have savings accounts. To have any retirement savings account, you need income.
Be aware though, most banks do charge service fee for accounts with very small amount of balance. You may need to help her to avoid this.
2007-01-27 23:33:24 · answer #4 · answered by tkquestion 7 · 0⤊ 0⤋
Its a general rule to save is good,
However anytime you get over $500 in any account, can be seized or have liens put upon it.
FYI,
2007-01-27 23:34:56 · answer #5 · answered by gipster1966 2 · 0⤊ 0⤋
I certainly hope not, the money she is doing this with is tax payer money. Tell her to get an education.
She can have a savings account, not an IRA or some kind of retirement plan, this is OUR money, NOT her's, she didn't earn it.
2007-01-28 00:35:54 · answer #6 · answered by HAGAR!!! 6 · 0⤊ 3⤋