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Category: Finance
Satisfied Customers: 4512
Experience:  Tax professional and business consultant for 35 years.
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Of counting allowable income and assets

Customer Question

For purposes of counting allowable income and assets for someone in a nursing home receiving Medicaid, is an IRA counted as an asset subject to the $14K limit, or instead is it counted as income, under the $50 per month limit? Thanks!
Submitted: 1 year ago.
Category: Finance
Expert:  PDtax replied 1 year ago.
Hi from Just Answer. I'mCustomer I'll assist.
Expert:  PDtax replied 1 year ago.
Hi from Just Answer. I'mCustomer I'll assist. IRAs are counted as income if they are in "payout status", and then only to the minimum required distribution, or RMD. This is counted as income, subject to the monthly income limit. If the account is not in payout status, then it is considered an asset, and would be subject to the asset limit. Thanks for asking at just Answer. Positive feedback is appreciated. I'mCustomer
Customer: replied 1 year ago.
So, if you withdraw more than the minimum required distribution, the excess would not count as income?Real figures, age 90, balance in account $9,000, RMD $900, what if we withdraw the entire $9,000?Thanks
Expert:  PDtax replied 1 year ago.
The excess is counted as income for medicaid purposes. Any amount over that $50 monthly allowance for incidentals is counted as income.Customer