How should a PHA determine the cash value of a retirement account, such as a 401(k), if it is unable to obtain verification of the cash value of the account?
If the PHA is unable to verify the tenant’s 401(k) account balance, the penalty for premature withdrawal (usually 10 percent), and tenant and employer contributions with the independent source (i.e., employer), the PHA may use tenant supplied documentation to determine and verify the cash value of the asset. However, the PHA must document in the tenant’s file why third-party verification was not available (24 CFR 982.516 and 24 CFR 960.259). See the Notice PIH 2004-01, Verification Guidance for a complete discussion on HUD-established verification policies for income, assets, and expenses.
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