Can distributions from retirement plans affect Medicaid eligibility?
When you get ready to take a Minimum Required Distribution (MRD) or other distribution from your retirement account, you should first speak with an elder law attorney. Distributions from retirement plans are scrutinized by Social Services in determining Medicaid eligibility. As one example, a retirement account is considered a “countable resource” to the Medicaid applicant; however, if you elect to receive “periodic payments” from the account, the account is not considered a countable resource. The size of the periodic payment and its connection to your life expectancy are also significant factors to consider. Recent amendments to the Medicaid Resource Codicil indicate that a non-uniform or inconsistent basis is considered a conversion of the retirement account, making the account a countable resource. It is important to structure retirement account distributions with an eye toward qualifying for Medicaid in the future.
