Iowa uses its own life expectancy table.

ANNUITY RULES

According to the Iowa Department of Human Services Administrative Code section 75.23(9) entitled Purchase of annuities:

a. The entire amount used to purchase an annuity on or after February 8, 2006, shall be treated as assets transferred for less than fair market value unless the annuity meets one of the conditions described in the following paragraphs:

i. The annuity is an annuity described in subsection (b) or (q) of Section 408 of the United States Internal Revenue Code of 1986.
ii. The annuity is purchased with proceeds from:

1. an account or trust described in Subsection (a), (c), or (p) of Section 408 of the United States Internal Revenue Code of 1986); or
2. a Roth IRA described in Section 408A of the United States Internal Revenue Code of 1986

iii. The annuity:

1. Is irrevocable and non-assignable;
2. is actuarially sound (as determined in accordance with actuarial publications of the Office of the Chief Actuary of the United States Social Security Administration); and
3. Provides for payments in equal amounts during the term of the annuity, with no deferral and no balloon payments made.
4. Iowa is named as the remainder beneficiary either:

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

Visit Iowa’s Department of Human Services to learn more.

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