Are retirement plans counted towards the $2,000 Medicaid limit? I have been told that my mom does not qualify for Medicaid because of her 401(k) plan. I’ve also been told that she can keep that fund and still get Medicaid. What do I do? I almost cashed her plan out last week.
The rules about Medicaid are complex, and the rules about Medicaid and IRAs can be very confusing. So, how do IRAs (and pensions, 401(k)s, 403(b)s, etc.) affect Medicaid eligibility? Will a large IRA disqualify a nursing home resident for Medicaid? For those who are receiving payments from their IRAs (or the Required Minimum Distribution if they are over 70 ½ years of age), IRAs are treated as income in the month received—they are not counted as an asset. In Georgia, a nursing home resident must be receiving a distribution from the IRA that includes at least some principal in order for this to be true. IRAs that are not in payout status are treated as a countable asset for the Medicaid applicant. So, it really depends on your situation, and it can be tricky to determine how to navigate Nursing Home Medicaid if an IRA is involved. We need to learn more about your mom’s situation. Please call our office for a complimentary consultation at (404) 843-0121 to get this process started and to get the answers you need. And please do not cash out her retirement fund until you get advice from an experienced certified elder law attorney.