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Lane
Lane, JD,CFP, MBA, CRPS
Category: Social Security
Satisfied Customers: 10098
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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I am 60 years old and on complete SSA disability. If I

Customer Question

I am 60 years old and on complete SSA disability. If I should have to go into a nursing home, what happens to my house and IRA account?
Submitted: 1 year ago.
Category: Social Security
Expert:  Lane replied 1 year ago.

Hi,

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The house is exempted from medicaid availability

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Medicaid applicants can have only a small amount of assets to be eligible to receive benefits ($2,000 in most states). Certain assets -- i.e., again, a house, car, and burial plot -- are exempt from eligibility determinations. Whether your IRA counts as an exempt asset depends on whether it is in "payout status" or not.

Expert:  Lane replied 1 year ago.

At age 70 ½, individuals must begin taking required minimum distributions from their IRAs, which means the IRA is in payout status.

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AND, you're also able to choose to put your IRA in payout status as young as age 59 ½ if you elect to take regular, periodic distributions based on life expectancy.

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If an IRA is in payout status, depending on your state, it may not count as an available asset for the purposes of Medicaid eligibility, BUT now you may (depending on the amount, have an issue with the INCOME levels Medicaid will allow before it hurts nursing home assistance.

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If you're one of those where the monthly amount would end up being below the medicaid eligibility level, THAT would say ... definitely start taking the monthly payout.

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And, of course, you can always spend down the IRA for exempt items LIKE the house, the car, burial prepaid expenses, etc.

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Let me know what questions you have from here

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lane

.

Expert:  Lane replied 1 year ago.

f this HAS helped, and you don't have questions, I'd appreciate a positive rating (by clicking the stars or smiley faces on your screen) ... that's how we're credited for the work here)

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But again,if you have further questions please let me know...

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Lane

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