Many people worry that nursing home care will consume their retirement savings.

While Medicaid rules may require individuals to use certain assets to pay for care, the answer is more complicated than simply “losing everything.”

How Retirement Accounts Are Treated

Retirement accounts such as IRAs or 401(k)s may be treated differently depending on factors such as:

• Whether the account is in payout status
• The type of account
• The applicant’s marital status

Spend-Down Requirements

If retirement assets are considered countable, individuals may need to use them toward the cost of care before qualifying for Medicaid.

However, certain planning strategies may help preserve assets for spouses.

The Importance of Professional Guidance

Because retirement accounts involve both Medicaid and tax considerations, families should seek professional advice before making decisions about withdrawing or transferring funds.