The 2026 exempt list
| Asset | Exempt? | The condition that matters |
|---|---|---|
| Primary home | Yes | Equity under $752,000, or a spouse, child under 21, or disabled child lives there, or stated intent to return |
| 1 vehicle | Yes | Any value |
| IRA / 401(k) | Yes in Ohio | Must be in payout status, taking required distributions |
| Funeral contract | Yes | Must be irrevocable |
| Household goods, personal effects | Yes | None |
| Life insurance | Partly | Small face-value policies; cash value above the threshold counts |
| Cash, savings, brokerage | No | Counts toward the $2,000 |
| Second home, rental property | No | Counts, with narrow exceptions |
The Ohio-specific rule national sites miss
Retirement accounts are countable in many states. Ohio exempts them once they are in payout status, meaning required minimum distributions are actually being taken. For a family whose largest asset after the house is an IRA, flipping payout status on is sometimes the single highest-value move available, and generic national explainers routinely miss it.
Why the list matters more than the limit
The $2,000 figure frightens people into thinking everything must go. In practice the question is composition, not total: $150,000 held as cash is roughly 16 months of private pay before Medicaid is even in reach, while the same value held as home equity, a paid-off car, a funeral contract, and a payout-status IRA can be fully compliant today. Moving value from the countable column to the exempt column at fair market prices is lawful, penalty-free, and works even after a nursing home admission. The mechanics are in the spend-down rules guide.
Exempt is not always permanent
Two caveats keep this list honest. The home is exempt for eligibility but stays exposed to estate recovery after death, which is why long-horizon planning moves it into a trust, per the Ohio MAPT guide. And exemptions attach to conditions: a vehicle sold becomes countable cash, an intent-to-return statement lapses at death. The full strategy picture is in the asset protection overview.
The thing to weigh before acting: converting assets changes their character for Medicaid, but also for your estate. Do the conversion with the after-death rules in view, not just the eligibility rules.