Change in Treatment of IRAs in Texas

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Disclaimer: With Medicaid, VA, and insurance regulations frequently changing, past blog posts may not be presently accurate or relevant. Please contact our office for information on current planning strategies, tips, and how-to's.


A spokesperson for the Texas Health and Human Services Commission recently announced a change in policy. In Texas, IRAs have been exempt as long as the individual is taking their RMDs. These RMDs would not be counted as regular income so it would not affect their Medicaid co-pay.

With this new policy, if the owner is under 70 ½ and not taking RMDs, the IRA can still be exempt by purchasing a deferred annuity within the IRA. But if the owner is over 70 ½ and subject to RMDs, the annual RMD amount will be divided by 12 months and applied to their monthly Medicaid co-pay.

Now, the IRA’s monthly income could cause eligibility issues as well as making the Medicaid co-pay much greater.