Roth IRA’s & Medicaid
We have a 74 year old married client who will soon be entering a nursing home ( NY ). He has a Traditional IRA valued at $ 250,000.00 for which he has been taking annual RMD’s. He also has a Roth IRA valued at $ 100,000.00 and has not taken any distributions. How will each of the accounts be looked at by the state? Income Based v Resource Based?
Permalink Submitted by Alan - IRA critic on Wed, 2022-01-12 19:08
This question primarily deals with individual state Medicaid rules, so is beyond the scope of this forum. My general impression however is that these IRA accounts are subject to spend down of resources, but a certain amount could be left for the spouse’s benefit in NYS. However, since the average cost of a nursing home in NYS is around 13k per month, 350k of IRAs would be gone in around in a little over 2 years. The client and spouse should at least consider moving to a southern state where these costs are less than half of NYS costs.