Deb and LL-

I need some advice- we would be eligible for about $450 in food stamps a month, for 8 people, if we didn't have a $7,000 IRA from dh's first job in MN, a 3 year job.  We still have about $29,000 in credit card debt.  I anticipate a lower income for the next year.  If you were me, would you cash the IRA, put it towards cc bills and lower the monthly bills, and qualify for food stamps?  My understanding is if I get the IRA cashed adn use towards bills, it is fine.  

What would you do in my situation?

It seems stupid to cash out some of the little retirement we have, but we need to eat- curently our monthly income in unemployment and two part-time jobs is about $2500 a month, our mortgage is $1800 and utilities are about $400.Gas for dh is about $350 with long commutes to school.  I thought Bush was trying to pass a retirement asset exclusion for food stamps in 2007, don't know what happened to that.

 Tracy, what a big decision. Do you know how much you will have to pay for taxes if you use the IRA? Or is your income so low that it may not matter.  I will pray you to make the right decision. Babs

Dear Tracy, The IRA is an investment in your future.  Please take into account not only the taxes if any you'd be paying to cash it in, but also how you could replenish your ret irement savings.  You could be ineligible for Food Stamps sooon, if your husband and/or you start to earn a good income.  All of that said, if I were you, I'd reduce your debt by cashing in teh IRA, so that you can be on Food Stamps, & living with less of a debt burden.  But I'm NOT you.  Maybe you could look up the IRA tax info, & share it with us.  In that way, we might be able to help you out more.  Right now, I feel extremely presumptuous in trying to help you out with your dilemma.   Yours in Him, Deb

Here's what I'm going to do- meet with the food stamp intake person on April 1 and ask my questions in person- I am going to fill out most  of the form, although not the asset part, and bring that.   In the meantime, I'll call Ivy Funds, where the IRA is, and ask about penalties and taxes.  Then by April 2, I should know what I'm going to do. 

Deb, dh would start at a reduced salary for a year, after he gets a job.  We are in the low income zone for a while!  All this will lead to a railroad pension and good salary in the long run, we are going to put in some time before that.  We were preparing for this the last few months, it is a total career change, dh has written direct mail for 20 years.  

Thank you for your advice and interest-

your trying to be frugal yet not needy friend- 

Now, here, my "trying to be frugal yet not needy friend," I couldn't agree with you moer, Tracy.  Every month tha I receive public benefits otehr than Social Security & Medicare (on which I paid my due taxes for years), I cringe.  I can't wait until I begin to taper off them!  And that certainly includes Food Stamps.

I think that your idea of bringing info about the IRA to your meeting with teh FS worker is a great idea.  Let the expert help to guide you.

Let's hope & pray that your dh receives a raise sooner than you are now expecting!

Love in Him, Deb