Inbox Questions | IRA Income & Medicaid Eligibility: Will Too Much Disqualify You?
Big Picture Retirement®
Devin Carroll
4.7 • 546 Ratings
🗓️ 27 February 2025
⏱️ 10 minutes
🧾️ Download transcript
Summary
Dan asks: If monthly income from an IRA exceeds $2,908 for a single person, would that result in disqualification for Medicaid? We break down the income limits, potential strategies to navigate Medicaid eligibility, and how certain tools—like Qualified Income Trusts (Miller Trusts)—can help individuals qualify despite exceeding the income cap. Tune in for a clear explanation of how Medicaid rules apply to retirement accounts and long-term care planning.
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Transcript
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| 0:00.0 | Welcome to the Big Picture Retirement Show. |
| 0:07.7 | Today, we're going to the inbox to answer questions sent in by you, our listeners. |
| 0:12.7 | Now, if you'd like to send us a question, just head over to big pictureretirement.com and click |
| 0:17.3 | the Ask a Question tab in the top menu. |
| 0:19.8 | Oh, and just a quick reminder. |
| 0:21.2 | On this podcast, we provide general information |
| 0:24.3 | and not specific tax, legal, or financial advice. |
| 0:28.0 | But if you're ever ready to move from the broad education we provide here |
| 0:31.9 | to personalized advice that's specific to you, |
| 0:35.6 | you can find links to our websites down in the description. Now let's jump in |
| 0:40.0 | today's question. John, today's question comes from Dan. And dad says, I enjoyed your podcast |
| 0:49.1 | regarding using IRA funds for long-term care and the information about eligibility for Medicaid in Texas. |
| 0:56.1 | But I have a question. |
| 0:57.0 | If monthly income from the IRA exceeds $2,908 for a single person, would that not result in disqualification for Medicaid? |
| 1:08.5 | Fantastic question. |
| 1:09.5 | Yeah. |
| 1:09.9 | So the government has dumb rules. Did you know this? |
| 1:13.3 | Yeah. Well, if this was news, the government has dumb rules. And one of the dumbest is the Medicaid income cap. |
| 1:23.3 | Okay. All right. So, and not all states have an income cap, but, but many states do. |
| 1:29.8 | So Medicaid's essentially a two-part test. |
| 1:32.0 | There's an income test and there's an asset test. |
| 1:35.2 | Right. |
... |
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