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Medicaid rules may treat a $100,000 IRA as an obstacle to coverage
Planning for nursing home costs can be complicated by strict Medicaid income and asset limits, and some states use a five year lookback for eligibility.
In a financial advice column, Yahoo Finance addresses whether a nursing home can take a $100,000 individual retirement account, and how seniors can think about protecting assets when long term care becomes necessary.
The article notes that the practical issue often centers on Medicaid, which many people view as a lower cost option for long term care. However, Medicaid eligibility depends on strict income and asset limits that vary by state, and a $100,000 IRA is described as likely to disqualify applicants from coverage.
It also highlights a key complication for those considering asset restructuring: many states apply a five year lookback period when assessing Medicaid eligibility. That means attempts to move assets shortly before applying may not help.
Yahoo Finance says that when planning is done in advance, there are options that may be available to relocate assets in ways intended to support potential Medicaid qualification, including through Medicaid compliant annuities that may be treated differently under the asset limit rules.