Can I Keep My IRA and Still Be Eligible for Medicaid?

Medicaid applicant’s have several choices when it pertains to their IRA’s:

1) Cash them in, but will cause an additional income for that year and probably place the applicant in a higher tax bracket; or

2) Keep the IRA, but Medicaid will count it as resource – keep in mind that Medicaid applicant’s can have as much as $14,850 in resources and if the IRA is less than $14,850 the applicant may keep it; or

3) Keep the IRA, but turn it on. That means receiving the monthly distribution (RMD). If the applicant turns the monthly distribution on, than the balance of the IRA can be any amount. Reason is, Medicaid will not count the balance as a resource as long as the applicant receives the monthly distribution.