The District of Columbia uses the life expectancy tables published by the Office of the Actuary of the Social Security Administration, here.

ANNUITY RULES

According to the DC State Plan, Supplement 9(a) to Attachment 2.6-A:

1. For purposes of this section, the purchase of an annuity by the institutionalized spouse or the community spouse will be treated as the disposal of an asset for less than fair market value unless:

a. The State is named as the remainder beneficiary in the first position for at least the total amount of medical assistance paid on behalf of the annuitant; or
b. The State is named as a remainder beneficiary in the second position after the community spouse or minor or disabled child and is named in the first position if such spouse or a representative of such child disposes of any remainder for less than fair market value.

2. The purchase of an annuity by or on behalf of an annuitant who has applied for medical assistance for long-term care services will be considered a transfer of assets for less than fair market value unless:

a. The annuity is described, in section 408 of the Internal Revenue Code of 1986, subsection (b) individual retirement annuities or (q) deemed IRAs under qualified employer plans; or
b. Purchased with the proceeds from:

i. An account or trust described in section 408 of such Code, subsection (a) individual retirement account (c) accounts established by employers and certain associations of employees or (p) simple retirement accounts;
ii. A simplified employee pension (within the meaning of section 408 (k) of such Code, or;
iii. A Roth IRA described in 40BA of such Code, or;

c. The annuity is:

i. Irrevocable and nonassignable;
ii. Is actuarially sound (as determined by Social Security Administration publications); and
iii. Provides for payments in equal amounts during the term of the annuity with no deferral and no balloon payments made.

For more information please visit the District of Columbia’s Department of Human Services website.

Click here for District of Columbia Desk Reference PDF

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