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3 Bumps

Food Stamp Question

Do you think people should have to cash out their IRA or 401K before accepting food stamps?

This is based on another question I saw on here. I have never considered this before but it does seem like you should have to use any money your family has available to take care of yourself and when you have exhausted your resources then you should be able to turn to the government for help.

Interested in others thoughts on this. Please be nice!!

Answer Question
 
ria7

Asked by ria7 at 3:19 PM on Apr. 13, 2011 in Politics & Current Events

Level 23 (15,224 Credits)
Answers (42)
  • The only time me and my dh ever had to get them we DID cash in our 401k before we ever asked for any assistance. I would think anyone going through a difficult time would think of that? But otherwise I do think they should have to.
    gemgem

    Answer by gemgem at 3:21 PM on Apr. 13, 2011

  • I see what you are saying but no. I think keeping peoples 401K's in there works best in the long run. While yes the government is paying out to help them right now its better then everyone exhausting what is in their 401's, IRA's whatever then the government having to fully support them when they are older, does that make sense?
    Mel30248

    Answer by Mel30248 at 3:21 PM on Apr. 13, 2011

  • I don't think people should have to do that. You pay a TON in taxes and screw yourself for the future by doing that. Plus, many people (not all) use the system the way it was meant to be used-as a bridge during hard times while getting back on their feet. Should they pawn their wedding rings and sell their cars, too? There will always be people who abuse the system. But don't punish others by killing what they've got for the future while they're going through a TEMPORARY hard time.
    musicpisces

    Answer by musicpisces at 3:23 PM on Apr. 13, 2011

  • not sure but on the Application.. it requests : or should I say asks about your bank acct info and amount. assets, cars, home, land, anyone in the house hold on SS or disablity. so I would imagine those questions too would be on there....
    kkbird

    Answer by kkbird at 3:24 PM on Apr. 13, 2011

  • Actually according to the snap guidelines you cannot have more then $2k iun assets which includes most 401k's. Link is here:

    http://www.fns.usda.gov/snap/rules/Memo/2002/pensions.htm
    Anonymous

    Answer by Anonymous at 3:24 PM on Apr. 13, 2011

  • musicpisces..what you are saying makes sense too. I think selling cars depends on what the cars are worth. I do think people should downsize their house and go back to basics (cutting cable) first before getting help. I have no dea what the states gudelines are but it seems ike you shouldnt be ablt to have $30,000 in a retirement account and having the government buy you food.
    ria7

    Comment by ria7 (original poster) at 3:27 PM on Apr. 13, 2011

  • thanks anon..that is helpful I'll check it out.
    ria7

    Comment by ria7 (original poster) at 3:29 PM on Apr. 13, 2011

  • It says retirement accounts are not counted as resources only cash and checking/savings accounts are included.
    ria7

    Comment by ria7 (original poster) at 3:31 PM on Apr. 13, 2011

  • Wow, it must be nice to be able to have a 401k. But no, I don't think that you should have to dip into these savings if you are having a rough time. Like other posts, most everyone pays a crap load of taxes, so why not get a lil help if you are having a rough time in providing your family with food. Now, cutting back on un-necessary utilities and everything is a different story. I think that ppl should most def try that approach first.
    punkypreggo

    Answer by punkypreggo at 3:32 PM on Apr. 13, 2011

  • I don't think people should be racking up wealth while on PA however I don't think they should have to be at the point of losing all belongings before being allowed to get any help at all.  I do believe there is a 10% tax penalty for withdrawing early. Lets kick people while they are down.  If they have been contributing to a 401K they have also been paying taxes for how long? I am sure that the other savings they have were used before it got to that point.


    To me it puts a focus on the wrong people what about the ones that are a constant drain?

    Charis76

    Answer by Charis76 at 3:36 PM on Apr. 13, 2011

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