Medicaid of Ohio has just published a new rule regarding IRAs.

 

This new rule is a potential Game Changer for many Ohio residents holding IRAs as part of their investments.

 

Previously, if you owned an IRA, then Medicaid required you to liquidate the IRA and spend it down in order to become Medicaid qualified. Under this new rule, as long as you are taking out the annual Required Minimum Distribution (RMD) amount, then in Ohio, the IRA is an exempt asset. While you must still pay the RMD amount to the nursing home, the IRA itself remains an exempt asset.

 

For example, a 75 year old person who owns a $100,000 IRA is required to take out $4,065 each year as part of their RMD. This comes out to about $339 per month. The new rule means that you can keep your $100,000 IRA virtually intact. You just need to pay $339 per month to the nursing home as part of the Medicaid qualification rules.

 

This is a very exciting new development and will help many Ohioans.