Ask Terry Questions Medicaid spend down ira

Medicaid spend down ira

By Terry Savage on June 17, 2024 | Financial Planning / Retirement

It possible to withdraw traditional Ira money to pay long term memory care facility, with out a penalty? My sister is 88 and has dementia. We are in the of applying for Medicaid.
Thanks Terry. Love your program on WGN

Terry Says

Each state sets its own requirements on how IRA assets impact Medicaid eligibility, and how payouts are treated. For example, (and assuming you might be from Illinois because you listen on radio!), here are the Illinois regulations:  Illinois Medicaid Eligibility: 2024 Income & Asset Limits (

I suggest you get an elder law attorney familiar with your state’s laws to help you through this process.

You can search for a reputable elder law attorney here at the website of the National Elder Law Foundation: National Elder Law Foundation (

You might also use these resources from the American Council on Aging.  You can search there for rules by state:

How IRAs, Pensions & 401Ks Impact Medicaid Eligibility (


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