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Annuities and Medicaid

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izzie02

Active Member
State=Minnesota.
A little back round. Husband will be receiving a relatively small pension, approx. 450-509 per month depending on what option he chooses for dispersement, or can choose to "cash out" or rollover about 103,000.00 to some account. We need to make a decision end of this month.

First, I don't pretend to be knowledgeable about this stuff and am overwhelmed regarding all the decisions to be made with husband turning 65.

Met with a financial person at my bank to hear about options for doing a roll over to a, it seems to be called a immediate Annuitiy. Partially because when either my husband or I die I could be leaving money on the table that could go to son, emphasis on could, I understand some amortization on the amounts possible.

Now I have read that if Medicaid needed in the hopefully distant future, it could effect qualifications, ie; being denied because of an Annuity. Because it talks also about Annuities being used to "protect asests" being the reason some use it mostly to keep Medicaid spend down away from that money so it can be left to a beneficiary. However, that is not the intent with me, just think it may be a better option. Also may need to mention the difference in what the pension would be about 450.00, with the Annuitiy, about 409.00 per month so I'm really not gaining much by just going with the company pension.

Another thought, one of those "what ifs" that could happen. If company just up and sells out and gets out of US (slim possibility, German Company in business for over 100 years, medical and measuring equipment) then pension could just stop and going with a Annuitiy and being more control (???) of money ourselves.

Could this effect future need for Medicaid??

Sorry so long, just trying to be complete.
 
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LdiJ

Senior Member
State=Minnesota.
A little back round. Husband will be receiving a relatively small pension, approx. 450-509 per month depending on what option he chooses for dispersement, or can choose to "cash out" or rollover about 103,000.00 to some account. We need to make a decision end of this month.

First, I don't pretend to be knowledgeable about this stuff and am overwhelmed regarding all the decisions to be made with husband turning 65.

Met with a financial person at my bank to hear about options for doing a roll over to a, it seems to be called a immediate Annuitiy. Partially because when either my husband or I die I could be leaving money on the table that could go to son, emphasis on could, I understand some amortization on the amounts possible.

Now I have read that if Medicaid needed in future, it could effect qualifications, ie; being denied because of an Annuity. But it talks also about Annuities being used to "protect asests" being the reason for such things. However, that is not the intent with me, just think it may be a better option. Also may need to mention the difference in what the pension would be about 450.00, with the Annuitiy, about 409.00 per month so I'm really not gaining by just going with the company pension.

Another thought, one if the could happen. If company just up and sells out and gets out of US (slim possibility, German Company in business for over 100 years, medical and measuring equipment) then pension could just stop and going with a Annuitiy and being more control (???) of money ourselves.

Could this effect future need for Medicaid??

Sorry so long, just trying to be complete.
An annuity is not necessarily what you want. You want to roll the money into a IRA qualified investment, which could be an annuity, but it could also be many other things. You might want to talk to some more people about potential IRAs rather than lock yourselves into an annuity.
 

izzie02

Active Member
Thank you for your quick reply. From what I just read a Roth rollover may effect, raise income for that year. Because our income right now is so low, almost non existent, we do get assistance with state sponsored health insurance. The Roth rollover may make me at least (husband will be on Medicare with Advantage plan) ineligible if it is counted towards income for this years income. Maybe that's why the financial planner at bank suggested Annuitiy, because it doesn't count as income when rolled over to that.
--sorry, I am confused and overwhelmed with everything right now and for the past several months, anxiety is setting in and putting in bets on what choice for the future.

Side note, we are trying not to start Social security benefits until he is at the full amount at age 66 + 3 months. But we have to pay out of pocket for the Medicare ($144) plus the add on of $45 per month.
 
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