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Getting public assistance should be hard to do and it ought to be difficult as well. When it’s created by you easy to get government assistance, well, more and more people do it. One of the lessons of Welfare reform of the 1990’s was that lots of folks ceased collecting welfare, before the reforms were applied even. Some think that the talk of reforms scared many folks off the dole just, as they thought they might be caught committing fraud. And that is clearly a pretty powerful observation right there.

If people think they can escape with something, they will. If they think they will get caught, they won’t. Similarly, while a 401(k) plan or IRA plan is intended for retirement, we should have some approach to counting this, or at least pro-rating the accounting, predicated on the age group. While we don’t want to encourage visitors to cash in their retirement plans at age group 30, by age 60, they must be spending at least a little of this money, rather than asking the government for more.

But of course, getting visitors to report assets requires self-reporting of property. A case worker could, in theory, research the deed information of a home and determine, roughly, its value and whether it’s encumbered by a home loan. However, generally in most jurisdictions, you have to do a name search to find some of this information (most websites on the internet to show only the owner’s name and the tax bill.

IRA plans. So endeavoring to enforce this facet of a resources test would be nearly impossible. Without evidence of fraud, you cannot prosecute such cases, so you could not even subpoena such information, without solid evidence. Which is why the Federal government probably has slipped these items from any “needs test” – they may be hard to enforce. But again then, many folks would balk if these items were detailed on the requirements probably.