Medicaid Will Take Your IRA

17 Jul 2022 · 1 min

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0:55

In this brief video, the speaker warns that if a person lives in a state not on a specific Medicaid list, the state’s Medicaid program may require them to spend down their IRA, 401(k), and possibly their spouse’s retirement accounts before qualifying for nursing‑home benefits. The speaker explains that the money must be spent in ways approved by Medicaid; otherwise, the distribution can be deemed a prohibited gift, leading to penalties and the need to pay privately for care. He outlines possible preservation methods such as purchasing Medicaid‑compliant annuities and employing income‑shifting techniques, emphasizing that these strategies vary widely by state and should be implemented with the assistance of a qualified attorney. The video concludes with a call to follow for more information.

Chapters

Do you live in a state that's on this list? If you do not, if you live in some other state than the ones on this list, that means that your state Medicaid program will require you to spend your IRA and your 401 and maybe that of your spouse's before you'll be eligible for benefits in a nursing home. And that doesn't mean that you can go on around the world cruise with it or give it to your kids. You have to spend it in a way that Medicaid says you can. If you spend it in a way that Medicaid does not approve of, then it may be deemed a gift and you'll be penalized and required to private pay at the nursing home. There are ways that you can preserve a great deal of the money in your IRA, your 401, such as buying a Medicaid-compliant annuity and doing some income shifting, but you need to see a lawyer like me to do that. These laws vary widely from state to state. Find out what they are in your state. For instance, where I live, both spouses' IRAs will be counted against them. This is very complicated stuff. Follow me for more information.