@J1Zee wrote:
Does anyone know how taking witrhdrawals from an IRA will affect Medicaid eligibility? My parents currently have Medicaid, buy if they decide to take distributions or withdrawal from their IRA, they would go over the income limit. Question is, can they take out just enough money so that it is offset by the standard deduction and still qualify for Medicaid? I know eligilibility varies from state to state, so anyone familiar with NY would be helpful.
To get into more specifics, they are 65 and get a combined ~ $1400 in social security a month. That's their only source of income currently. The combined value of their retirement accounts is about $300,000. If they take withdrawals from their IRA that is less than the standard deduction of $24,800, will that still make them eligible? Or would that withdrawal still count in determining Medicaid eligibility?
Thanks.
IRA distributions are taxable income. Medicaid is administrated by the State and rules differ with different states. That is not a tax question and should be asked to the state medicaid agency.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
