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Medicaid and Roth

Posted: Sun Jul 17, 2016 7:13 pm
by Detroittl
A friend is on Medicaid and is low income but wants to start a Roth IRA. Is there any issue there affecting Medicaid eligibility ?

Re: Medicaid and Roth

Posted: Sun Jul 17, 2016 7:54 pm
by pshonore
Assuming he has no Traditional IRA to convert to a Roth, he would need earned income to contribute to a Roth. Of course even doing a Roth conversion would usually generate reportable income and could affect his Medicaid status, income limits, etc

Re: Medicaid and Roth

Posted: Sun Jul 17, 2016 9:01 pm
by Boglegrappler
I"m far from an expert, but I think most states have asset limits regarding medicaid eligibility, and they are usually so low that the idea of having savings is inconsistent with receiving public assistance from medicaid. Check the state website where he resides.

Re: Medicaid and Roth

Posted: Mon Jul 18, 2016 1:14 pm
by Phineas J. Whoopee
Boglegrappler wrote:I"m far from an expert, but I think most states have asset limits regarding medicaid eligibility, and they are usually so low that the idea of having savings is inconsistent with receiving public assistance from medicaid. Check the state website where he resides.
Medicaid expansion states don't have asset limits for recipients younger than 65. Non-expansion states may impose such limits. I agree completely it's state-dependent.
PJW