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Aged, Blind and Disabled Manual Policy Manual Number: 110.050 Section: Financial Eligibility Requirements Chapter: ABD Countable and Excluded Resources

September 1, 2026 Division of TennCare 47 Individual Retirement Account (IRA)

Funds held in an IRA, established for the benefit of an individual, are considered accessible. Count the equity value of an accessible IRA when determining eligibility. Funds in a SIMPLE plan or a Simplified Employee Pension (SEP) may be held in an IRA. Funds in an SEP or SIMPLE plan set up as an IRA should be treated as an IRA. An IRA held in the form of an annuity must be evaluated as an annuity.

If the accessibility of a retirement account or pension fund cannot be determined, the summary plan description or a written statement from the plan administrator must be obtained.

Retirement funds are considered nonliquid resources unless there is evidence to suggest otherwise (i.e., that they can be converted to cash in less than 20 days). As such, an individual with excess nonliquid resources, including retirement funds, who is otherwise Medicaid eligible, may qualify for conditional assistance while waiting for funds to become available if the individual agrees in writing to use the funds to repay the benefits he received during the conditional assistance period. Any excess funds remaining after the repayment are considered a resource. See the ABD Conditional Assistance policy for additional information regarding conditional assistance. Savings Account Resource Type The value of a savings account is a countable resource. If the current month’s income has been deposited into the account it must be excluded when determining the current value of the account. See the ABD Treatment of Resources: Ownership, Equity Value & Accessibility policy for treatment of jointly owned accounts.

A savings account may be excluded if it is used for one of the following purposes:

• Burial funds; • Business or Self-Employment; • Educational Income; • Individual Development Account; • PASS; • Proceeds from the Sale of a Home (subject to time limits); • Prorated as Income;