Will my father’s IRA disqualify my mother?

Will my father’s IRA disqualify my mother?

Short answer: It can count. When one spouse applies, both spouses’ countable assets are totaled, and in many states that includes the spouse at home’s IRA. But the spouse at home keeps a protected share.

Figures change periodically. Double-check current amounts before relying on them.

When your mother applies for Long-Term Care Medicaid and your father stays at home, the state adds up all of the couple’s countable assets, regardless of whose name they are in. In many states, that includes your father’s IRA or 401(k). Some states exempt the community spouse’s retirement accounts, or exempt accounts in payout status; others count them in full.

That does not necessarily mean your mother is disqualified. Your father keeps a community spouse resource allowance (CSRA): in 2026, between $32,532 and $162,660, depending on the state and the couple’s total. Only assets above his share and your mother’s own limit must be spent down or protected in other ways.

Options families discuss include:

  • cashing out part of the IRA and using it for allowed spend-down (taxes are owed on withdrawals);
  • converting assets into a Medicaid-compliant annuity for the community spouse, where the state allows;
  • a fair hearing to raise the CSRA if your father’s income is low.

Each has tax and Medicaid consequences, so look at the whole picture before acting.

Getting help

Every situation is different, and small facts can change the answer. If this question affects a real decision, especially with a spouse at home, a home, gifts or a trust, a Certified Medicaid Planner can apply your state’s rules to your situation. As a rough guide, published fees for help with an application range from about $500 to $6,000, and hourly help from about $150 to $600.

Last updated for 2026. General information only, not legal or financial advice. Medicaid Answers is a free educational resource published by Medicaid Answers Foundation.

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