J Annuity Payments

How annuity payments are counted depends on whether the annuity is revocable or irrevocable; and the MA program.

If the annuity is...	And the program is...	Then...
Revocable	All programs	For interest earned on the annuity see MA606KK - Interest and Dividends. For withdrawals from the principal, the payment is not counted as income. It is the conversion of a resource.
Irrevocable	ALTCS SSI-MAO MSP	The full amount of the annuity payment is counted as unearned income.
Irrevocable	Adult Caretaker Relative Pregnant Woman Child KidsCare	The taxable part of the payment is counted as unearned income. Any part of the payment that is not taxable is not counted.

See Special Treatment Trusts and ALTCS Eligibility for instructions on how to count annuities that are irrevocably assigned to a Pooled or Disabled Under 65 Special Treatment Trust.

Term	Definition
Annuity Payments	Fixed payments received for a person’s lifetime or a specified number of years from the investment of a person’s income or resources. There are two general categories of annuity income: Payments received according to a contract purchased from a life insurance or other investment company. Payments based on past employment. This includes pensions or retirement benefits. They may be based on the individual’s age, years of service or disability.
Irrevocable annuity	The annuity has been converted from a resource to a stream of income and cannot be cashed in. Also called an “immediate” annuity.
Revocable annuity	The contract can be surrendered and the funds in the account withdrawn. Also called a “deferred” annuity.

Proof of the annuity’s revocability, payments and the taxable amount of the payment includes:

Program

Legal Authorities

ALTCS

SSI-MAO

Medicare Savings Program

42 USC 1396p(c)(1)(G)

42 USC 1382a(a)(2)(B)

ARS 36-2934.02

20 CFR § 416.1121(a)

AAC R9-22-1909

Adult

Caretaker Relative

Pregnant Woman

Child

KidsCare

42 CFR 435.603

42 CFR 457.10, 300, 301 and 315