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Title 8: Medicaid Page 128 Iowa Department of Health and Human Services Employees’ Manual Chapter D: Resources Specific Non-MAGI-Related Resources Revised July 10, 2026 Retirement Funds Retirement Funds (Cont.)  Individual Retirement Account (IRA): The employee establishes and funds these accounts. The employee can liquidate these funds at any time. Retroactive Cash Payments P. L. 101-508 Exclude any retroactive cash payments paid to ineligible spouses or parents for providing in-home supportive services to the applicant or member. Exclude the payments in the month of receipt and the following month. Retroactive SSI and Social Security Lump-Sum Payments 20 CFR 416.1233 Exclude SSI and Social Security retroactive lump-sum income as a resource for nine months after receipt, as long as the funds can be identified as the lump-sum funds. (See 8-E, Lump-Sum Income for income guidelines. Unspent money from a retroactive payment must be identifiable from other resources for this exclusion to apply. The money may be commingled with other funds but if this is done and the retroactive amount can no longer be separately identified, the amount will count towards the resource limit. Verify that the funds are separate and represent a retroactive lump sum. Before the ninth month, the member must again verify resources. If resources exceed the limit, cancel the member, giving timely notice.

An unmarried member receives a social security lump sum of $4,500 on October 12. The worker sets a reminder for June 1. On June 19, the worker verifies the resources are $2,600.

On July 30, the member is canceled and is ineligible for non-MAGI-related coverage groups that have a $2,000 resource limit. The worker completes a redetermination. Effective August 1, the member is eligible under Medically Needy.