| Roth IRAs and Medicaid…read on:
READER QUESTION:
Can Medicaid require that applicants take RMDs from a Roth account? A friend who is applying for Medicaid was told that it is a requirement, but I was always under the impression that Roth IRAs were exempt. Your input would be appreciated.
MY RESPONSE:
Your friend is correct. While there is no RMD requirement for the IRS, Medicaid requires money to be taken out (albeit tax-free) from the Roth based on Medicaid’s own RMD schedule (more favorable to Medicaid). The money taken out will be considered income under the Medicaid rules and must be spent down.
I hope this helps! |
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