Restricted Accounts for CalWORKs or Former CalWORKs Recipients

CalWORKs recipients are allowed to retain cash reserves totaling up to a maximum of $5,000 in one or more restricted accounts. These funds:

  • Are in addition to the $2,250 ($3,500) CalWORKs property limit.
  • Must not be commingled with other funds.
  • Must be maintained at a financial institution (i.e. bank, credit union).
  • Must be declared as a restricted account.

Once a restricted account is established by a CalWORKs recipient, it continues to be exempt for MC purposes when:

  • There is at least one CalWORKs Assistance Unit (AU) member who would be in the MC MFBU if he/she were not receiving CalWORKs, and
  • The account is maintained in accordance with the CalWORKs rules.

ExampleExampleA CalWORKs parent is discontinued from CalWORKs due to time limitations and is set up on a Medi-Cal Only case. While on CalWORKs, he/she established a restricted account. Since his/her child(ren) remain eligible for CalWORKs, the restricted account is exempt when determining Medi-Cal eligibility for the parent as long as the account is maintained in accordance with the CalWORKs rules. It remains exempt until all children are ineligible for CalWORKs and the CalWORKs case is closed.

Interest Payments

Interest earned on a CalWORKs restricted account is treated as follows:

Interest for CalWORKs Restricted Accounts

If the interest is...   Then the...
Deposited directly into the restricted account by the financial institution,  The interest is exempt as income.
Not deposited directly into the restricted account by the financial institution,  Interest is considered a nonqualifying withdrawal and treated as income in the month of receipt.
Withdrawn from the restricted account because the account balance exceeds $5,000, 

Interest accrued in the month of withdrawal is treated as income.

Interest accrued in months prior to the month of withdrawal is treated as property.
Not withdrawn, and the restricted account balance exceeds $5,000,

Amount in excess of $5,000 is treated as property.

EXCEPTION: Interest payments are treated as income in the month of receipt.

Related Topics

Property Limits