Medicaid and Roth

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Detroittl
Posts: 98
Joined: Wed Jun 10, 2015 12:12 am

Medicaid and Roth

Post 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 ?
pshonore
Posts: 7145
Joined: Sun Jun 28, 2009 2:21 pm

Re: Medicaid and Roth

Post 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
Boglegrappler
Posts: 1335
Joined: Wed Aug 01, 2012 9:24 am

Re: Medicaid and Roth

Post 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.
User avatar
Phineas J. Whoopee
Posts: 9675
Joined: Sun Dec 18, 2011 6:18 pm

Re: Medicaid and Roth

Post 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
Post Reply