Amended by Stats. 2007, Ch. 622, Sec. 3. Effective January 1, 2008.
(a)(1) The principal and interest in a 401(k) plan, 403(b) plan, or 457 plan shall be excluded from consideration as property when determining eligibility and the amount of assistance with respect to an applicant for benefits who is not a recipient of CalWORKs benefits.
(2)The principal and interest in a 401(k) plan, 403(b) plan, IRA, 457 plan, 529 college savings plan, or Coverdell ESA, shall be excluded from consideration as property when redetermining
eligibility and the amount of assistance for recipients of CalWORKs benefits.
(b)For purposes of this section, the following terms have the following meanings:
(1)“401(k) plan” means a deferred compensation plan that satisfies the requirements of Section 401(k) of the Internal Revenue Code.
(2)“403(b) plan” means a qualified annuity plan that satisfies the requirements of Section 403(b) of the Internal Revenue Code.
(3)“IRA” means an individual retirement account that satisfies the requirements of Section 408 of the Internal Revenue Code.
(4)“457 plan” means a deferred compensation plan that satisfies the requirements of Section 457 of the Internal Revenue Code.
(5)“529 college savings plan” means a qualified tuition program that satisfies the requirements of Section 529 of the Internal Revenue Code.
(6)“Coverdell ESA” means an education savings account that satisfies the requirements of Section 530 of the Internal Revenue Code.
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