You got it backwards. For people who were conscio...

You got it backwards.

For people who were conscious savers, like the worker who contributed weekly to his 401k, and then he gets fired, when he needs food stamps he can't get them if he has over $2000 in his 401k account.

He'll have to cash out all but $1999.99, pay the penalties, prove that he didn't hide the cash under the mattress, before he can apply for food stamps.

You are right. You cannot save if you are receiving food stamps. No one would expect you to. Good point.