• Home
  • E-Booklets
  • Pay Less Tax
  • Privacy Policy
  • Cheatsheets
  • Contact Us
  • About us

Retirement Income

New Ways to Get More Retirement Income

  • Retirement Advisors
  • Retirement Insurance
  • Retirement Investing
  • Retirement Living
  • Retirement Planning

Ensuring that an Income Annuity qualifies you for Medicaid

Posted on September 28, 2011 by bobrichards

If you do not have insurance and think that you may need long-term care in the future, you may want to spend down your assets to qualify for Medicaid. You could achieve this by converting a portion of your non-exempt assets into an annuity. As most states offer special consideration to the income annuity. Before reading further, do ensure that using an income annuity in conjunction with Medicaid is viable in your state. A local attorney should be able to help you out with understanding the same.

 

To make the most of this option, you must use an income annuity with an irrevocable payout option. The reason for this is because the contract will be valued with the owner's assets if the owner has the authority to alter the terms of the payout. You must also remember that to qualify for Medicaid, you must have as few assets as possible.

 

Another point to remember is that the income received by the annuity should not exceed the amount allowed under the Medicaid spend down rules. Neither should it exceed the state's income cap limits. The irreversible payment schedule will not allow you to reduce the income from the contract, which will make you permanently ineligible for Medicaid.

 

For instance, if choose to check-into a care home that costs $4,000 per month, you must transfer enough assets into an income annuity, to ensure, you get an approximate of $1600 per month for the rest of your life. But taking your Social Security income into account, which we shall fix at a hypothetical $1300 per month, your income comes to a total of $2900 per month. This could make you ineligible for Medicaid due to the income cap mentioned by the state. For 2010, the maximum amount of earned income was $2022.  This way you do not receive benefits from Medicaid, nor would you have enough to cover your monthly bills. If you do decide to opt for income annuity to benefit from Medicaid, ensure that your income level is just right, as there'll be no way to change the terms, once you start receiving your monthly payouts.

 

 

Most Annuity Owners Make This Mistake

To get wealthy, invest like the wealthy
  • Why the wealthy steer clear of mutual funds
  • How the rich systematically make money in the market
  • Key metrics that differentiate good and bad investments
  • A comparison of ETFs and separately managed accounts you have never seen
  • Stop making the same investing mistakes as everyone else who listens to CNBC and reads Money Magazine. Do what the rich do! Free guide explains how they think and make investment choices.

    You might also like:

    • Estate Financial Planning Has Nothing to Do With Your WealthEstate Financial Planning Has Nothing to Do With Your Wealth
    • How Retirees Can Use Tax Reform to Their Advantage (and other senior tax breaks from 2017)How Retirees Can Use Tax Reform to Their Advantage…
    • Retirement Solutions— Difficult Trends and What You Can DoRetirement Solutions— Difficult Trends and What You Can Do
    • What's the True Cost of Senior HealthcareWhat's the True Cost of Senior Healthcare
    • Use Life Insurance in Estate Planning to Treat Beneficiaries EquallyUse Life Insurance in Estate Planning to Treat…
    • Update on Social Security Cash FlowUpdate on Social Security Cash Flow

    Filed Under: Annuities for Income

    About bobrichards

    Bob Richards
    Editor | Involved in Various Marketing Positions within the Financial Services Industry

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Second place winner best retirement blog

    SH award winner SMALL (1)

    Not Enough Savings to Retire?
    Learn Six Ways to Earn Retirement Income (from home)

    You do not need special talents, skills, computer knowledge, etc. We show you multiple ways others are working a few hours a week to generate a comfortable retirement income.

    Download Free Copy

    Latest Posts

    Update on Social Security Cash Flow

    Update on Social Security Cash Flow

    What's the True Cost of Senior Healthcare

    What's the True Cost of Senior Healthcare

    Social Security Office Cheating Retirees

    Social Security Office Cheating Retirees

    Use Life Insurance in Estate Planning to Treat Beneficiaries Equally

    Use Life Insurance in Estate Planning to Treat Beneficiaries Equally

    Estate Financial Planning Has Nothing to Do With Your Wealth

    Estate Financial Planning Has Nothing to Do With Your Wealth

    Categories

    • 401K IRA Roth Withdrawals, Distributions, and Rollovers
    • Annuities for Income
    • Estate Planning
    • Retirement Advisors
    • Retirement Insurance
    • Retirement Investing
    • Retirement Living
    • Retirement Planning
    • Social Security
    • Supplemental Retirement Income
    • Tax Savings
    • Alternative Investments
    • E-Booklets
    • Pay Less Tax
    • Privacy Policy
    • Cheatsheets
    • Contact Us
    • Subscribe
    • Sitemap

    Recent Posts

    • Update on Social Security Cash Flow
    • What's the True Cost of Senior Healthcare
    • Social Security Office Cheating Retirees
    • Use Life Insurance in Estate Planning to Treat Beneficiaries Equally
    • Estate Financial Planning Has Nothing to Do With Your Wealth

    The Retirement Income Blog

    25A Crescent Drive #1508
    Pleasant Hill CA 94523
    T: 844-887-4131
    E: [email protected]

    © 2018 Retirement Income