We are just at the point this year where we are considering IRA conversion to Roth. BUT, we do not carry LT care insurance, so I was researching Medicaid rules should one of us need that down the road.
Interestingly, rules regarding protecting the stay at home spouse vary greatly by state (and of course could change).
It seems that in many states, IRA's are not countable assets, but Roths are. Some have protection once IRA's are in payable status, meaning the RMD has started OR yearly withdrawals started after age 59.5 equal to at least what an RMD would be for the age of the person-and in some cases that even has to have a 5 year history.
In most cases, income for SS, pensions and RMD are countable assets. In others cases Roth can be a countable asset.
This has us rethinking how we take our distributions, and whether we will convert. Thought this was all interesting and something others may want to consider before converting.
Interestingly, rules regarding protecting the stay at home spouse vary greatly by state (and of course could change).
It seems that in many states, IRA's are not countable assets, but Roths are. Some have protection once IRA's are in payable status, meaning the RMD has started OR yearly withdrawals started after age 59.5 equal to at least what an RMD would be for the age of the person-and in some cases that even has to have a 5 year history.
In most cases, income for SS, pensions and RMD are countable assets. In others cases Roth can be a countable asset.
This has us rethinking how we take our distributions, and whether we will convert. Thought this was all interesting and something others may want to consider before converting.
