A friend asked me

[shyaushu]

A friend who is not on the CFL asked me if a 401k account counts for calculating the 125% above-poverty line criteria for the Affidavit of Support document.

 

My friend does not have much in the way of actual/legal assets, having only a relatively low-paying job.

[Randy W]

I had the impression when I filled out mine that no - it is not available for support during the next 5 years so you can't list it, but that may only be my impression. I don't think the directions address that issue directly.

Edited November 10, 2005 by Randy W (see edit history)

[skibum]

It is an asset but not income

[pkfops]

I just listed my 401k & IRA as an asset.

[david_dawei]

I-864 Fact Sheet:

http://uscis.gov/graphics/publicaffairs/fa...eets/affaqa.htm

 

7. Does a sponsor need to show proof of current employment?

A sponsor is not required to be employed, so long as the sponsor's income from sources other than employment, or the income of other qualifying persons in the household and/or assets are sufficient to reach or exceed the poverty line for the sponsor's household size. However, it is anticipated that in most cases the sponsor will need to be employed and show proof of employment to meet the income requirements.

 

 

21. What assets can be used?

Any type of asset can be used if it is readily convertible to cash within a year. Liquid assets, such as savings deposits, stocks, bonds, and certificates of deposit will be viewed most favorably because they would be most accessible for the support of sponsored immigrants. Other assets, such as property, may also be acceptable if they can be sold within a year.

[frank1538]

I'm going to guess yes, 401(k) assets can be counted if they are easily convertible to cash within a year. http://travel.state.gov/visa/immigrants/in...nfo_1328.html#6 indicates that savings can be used, and 401(k) accounts are technically savings accounts. The only caveat that I would throw in is that the full amount in a 401(k) account might not be vested (for example, an employer matching contribution), so a portion of the 401(k) balance might not be readily convertible to cash. Remember also that only 1/5 of the assets count for purposes of meeting the thresholds.

[Randy W]

I think you're really saying no there, Frank. From a legal point of view, they are NOT readily convertible to cash. That may be where I got my impression. I think bottom line is that if the 401K were used as collateral for a loan, it could not be confiscated if you defaulted.

Edited November 10, 2005 by Randy W (see edit history)

[tonado]

Yes, because one can liquid the 401K into cash even though the person would have to pay a 10% early withdrawal penality. The person would also have to pay the tax that year.

[Randy W]

Yes, because one can liquid the 401K into cash even though the person would have to pay a 10% early withdrawal penality.  The person would also have to pay the tax that year.

167900[/snapback]

 

 

You can withdraw or borrow money from your 401K, but using it as collateral for a loan, or as an asset on a financial support affidavit is a different matter entirely. I've never had to, so maybe it is possible.

 

If he needs to do this, by all means look into it. You could always file the affidavit and wait until (if) they request an additional source of income.

 

But this might be the time to line up an additional sponsor.

Edited November 11, 2005 by Randy W (see edit history)

[shyaushu]

Thanks for all your comments. I am sure my friend now has all the information he needs.