IRAs and Medi-Cal Qualification

The Medi-Cal applicant can have any amount of IRAs that are in his name, and still qualify for Medi-Cal. For instance, the applicant could have $200,000 or more in his name in IRAs, and still be eligible for Medi-Cal. IRAs and work related pension funds are also exempt from Medi-Cal qualification. The only requirement is that the Medi-Cal applicant must be receiving periodic payments of interest and principal from the IRA. If you are receiving minimum required distributions (RMDs) under the IRS rules from your IRAs, then you have probably satisfied this requirement.

In addition, the IRAs owned by the well spouse of a Medi-Cal applicant are also exempt for Medi-Cal qualification. The IRAs owned by the well spouse are also not included as part of the community spouse resource allowance (CSRA). The CSRA, or the amount the well spouse can retain is $115,920.

After the Medi-Cal applicant dies, the State cannot recover from his IRAs or from his work-related pension funds, provided that a pay on death beneficiary is named. If the beneficiary of the IRA is the estate of the applicant, the State may be able to recover against the fund. Beneficiary designations on IRAs and other assets should be reviewed as part of the long term care planning process with your elder law attorney.

This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers and families through the Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.

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