Can I qualify for Medicaid with an IRA or 401k?
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- เผยแพร่เมื่อ 2 ต.ค. 2024
- While IRAs and 401(k)s are usually substantial assets, there are several mechanisms an elder law attorney / medicaid planning attorney can utilize to turn them into what Medicaid would call a "non-countable resources."
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My mother wants to loan me money for a down payment on a condo for me and my family. 50k to be exact. She wants to withdraw it from her IRA. She recieves RMD payments. But Before doing so we want to make sure that it will not affect her medicaid. We are under the assumption that it will not affect her medicaid but need clarity on this. We live in New York. Thank you
There is a way to do this - using a medicaid-compliant promissory note. Only do so under the guidance of a NY elder needs lawyer (we only handle Florida). Good luck!
Very good information, just what I was looking for
Happy to hear it!!
My mom is 71 and she has 5,000 of 401k. She doesn't want to use it because she doesn't want to lose medicare A-B beucase both are sick. They also get Stamps . They need to use that money to fix their house and to get an electric scooter. can they use that money without losing everything they are getting ?
In Florida, as long as the funds (even from a 401k) are spent on something either parent (if married) needs or wants (including home repairs or buying an electric scooter), then Medicaid will not be interrupted. If they are receiving LTC benefits at home (e.g. though the Medicaid Waiver program) to pay for home-health care, you need to be careful because distributions from a 401k are considered income and if income exceeds the "income cap" in any calendar month, an income trust (QIT/Miller Trust) may be needed.
To further discuss, if your parents are in Florida, please schedule a consultation.
Best of luck!
Thank you sir II really appreciate if you answer my question. I have a medicare with 0 usd monthly payment since January 1st bit I cashed out my traditional 401k.
Am I still good or do I have to pay for all those months including interest and penalties?Do you have any recommendations?Best regards !
Thank you for your question regarding cashing out of your 401k. As it pertains to Medicare (not Medicaid) there should be no negative impact. Medicare is not a needs-based program (your assets and income do not impact eligibility). if you are in Florida and on Medicaid, then cashing out of the 401K would jeopardize access to those benefits unless a spenddown plan or other Medicaid planning tool was in place beforehand.
Thank you for this information. My situation does not involve a Nursing home (yet). I am in Fl. and am 64 ,taking early Social security and want to seek qualifying for Medicaid as my SS income is low enough. However, I have a traditional IRA like you mention in this video. So I am considering cashing it out along with the penalty. But isn't there something about a "look back" period that I should be concerned about, and can I spend my cashed out IRA money as I desire and still qualify for Medicaid?
The look back period only applies if you gift money away. Also, you can qualify for Medicaid to pay for home health care, medical expenses, prescriptions, and/or ALF care (i.e. not just for nursing homes). I'd suggest discussing alternatives to cashing out your IRA now.
@@elderneedslaw Thank you for your response. Qualifying for Medicaid for health care and expenses is my goal. I have an IRA with under 100 thousand but leaving it alone will disqualify me for Medicaid, and that is why I thought cashing it out like you mentioned in your video would be the way to go. I did hear you also mention "sheltering" it but I don't know what that entails. You are in Southern Florida I presume.
@@debchancy2304 Yes. I operate out of my Aventura and Plantation offices. I have other attorneys who assist me in South Miami and Tampa. We serve the entire estate, even if from a distance (nearly everything can be done over email). Please reach out if you'd like to set up a consultation.
Look back also applies to other assets even if you were to sell (not give away) your home and is a period of five years.
~ This is a slippery slope ~ Medicaid is different in all 50 states though Medicare is universal.
Agreed, a Millers trust may well be the best vehicle overall, however everyone's situation is different.
Beware of the 24 month "CLAWBACK" PROVISION. It can bite you where it hurts the most..
RMD {required minimum distributions] have been moved back to age 72.
Younger folks needing to plan for Medicaid may have better options.
Avoiding Probate, divesting one's assets well before the need arises may be another angle.
Probate codes differ in all 50 states so no cookie cutter approach works.
A qualified Elder law specialist is needed for advance planning.
A$$ET PROTECTION is key, while insuring the best options are available. YMMV.
Yes. I can only speak for Florida
Just watched your video great information
But do you have other videos that can help me understand my situation
My mother passed away 2 years ago left some money for my dad (age 73) not much
does not need assistant living
but we have a hard time paying for his insulin
Would he qualify for Medicaid in the state of Tx
Unfortunately, our elder care law firm only advises clients in Florida.
question is- the Secure act 2.0 will certainly become law. Can I still qualify for Medi-Cal (aged disabled poverty level program) with 95K in a traditional IRA? there will no longer be a "payout mode" or "payout status". My SS is only 1k a month so I still quaify income stream wise
So sorry, you'll need to speak with a California Medicaid Planning Attorney. I am only licensed in Florida.
thank you! blessings