Roth IRA for Medicaid planning
I have been told that you can use a Roth IRA to fund a single premium annuity, and the annuity and income stream will be exempt from the medicaid income rules and asset test. Does anyone know this to be true or where to find more information on this. Thank you! [email protected]
Permalink Submitted by Alan Spross on Mon, 2011-08-22 04:19
I am not well versed in Medicaid planning, but any immediate annuity eliminates the asset count because the purchase price has been surrendered to the insurance company. I don’t believe there is any difference here whether the annuity is non qualified, in a TIRA, or in a Roth IRA. Either way, once it is annuitized all that is left is an income stream. State rules for Medicaid qualification vary, but if total income including the annuity, SS treated similarly, etc is not too high, the individual might still qualify for Medicaid and the annuity income would be assigned to offset the Medicaid bill.
I am sure others can clarify this further.