Glossary I-words (AAM)

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Inaccessible resources - Resources not legally available to the individual.

Income - Cash or in-kind benefits which are regular and recurring, or which are treated as available for use regardless of actual receipt, e.g., deemed income.

Income-eligible for child care - A family whose gross monthly income does not exceed the maximum gross income limit for child care services.

Individual Retirement Account - a trust or custodial account set up in the United States for the exclusive benefit of the employee or beneficiary. Also referred to as a Traditional IRA, this financial device allows an individual to make tax-free contributions. All interest, dividends, and capital gains are not subject to tax while they are in the account; however, disbursements from the account are taxed as income. A Traditional IRA is created by a written document that must show that the account meets the following requirements:

. the trustee must be a bank, federal insured credit union, savings and loan association, or an entity approved by the IRS to act as trustee or custodian;

. with the exception of rollover contributions, there is an annual maximum on contributions;

. contributions must be from wages, salaries, commissions, self-employment income, alimony, or separate maintenance, or nontaxable combat pay;

. at all times the employee must have a nonforfeitable right to the amount;

. the assets of the trust cannot be commingled with other property except in a common trust fund or common investment fund (this does not apply to Deemed Individual Retirement Accounts under a Qualified Employer Plan);

- the account cannot be used to buy a life insurance policy; and

- distributions must begin the year following the year in which the employee reaches 70�. However, distributions can occur before the individual reaches 70 �.

Individual Retirement Annuity - a financial device or endowment contract issued by a life insurance company that meets the following requirements:

. is issued as non-transferable, such that the owner and/or beneficiaries are the only ones who can receive the benefits or payments;

. the entire interest in the contract must be nonforfeitable;

. there is an annual maximum on contributions;

. does not allow fixed premiums;

. refunded premiums must be used to pay future premiums or buy more benefits before the end of the calendar year after the year in which the refund is received;

. distributions must begin the year following the year in which the owner reaches age 70�. However, distributions can occur before the individual reaches 70 �;

. in the event that the owner dies during the distribution period, the remaining interest must be distributed at least as rapidly as if the owner were still alive; and

. in the event that the owner dies before the onset of distribution, then the entire interest of the owner must be distributed within 5 years of the owner's death. If a portion of the owner's interests is payable to a designated beneficiary, distributions will begin no later than 1 year after the owner's death and must provide for equal payments over the beneficiary's life. If the beneficiary is a surviving spouse or child the initiation of the benefits must not begin earlier then the date the owner would have attained age 70 �.

Institutionalized individual - For purposes of asset transfers, an individual who is an inpatient in a medical institution and with respect to whom payment is based on a level of care provided in a nursing facility, or who is a home and community-based services applicant or recipient.

Irrevocable Trust - A trust which cannot in any way be revoked by the grantor.