TSP Funds and Medicaid Eligibility for Retirees
Anyone familiar with the rules concerning TSP funds and Medicaid Long Term Care Eligibility?
I assume the TSP monthly pay out is considered income when applying for Medicaid eligibility long term care (nursing home situation)?
Is the entire amount of funds in your TSP considered an asset even if you have begun receiving payouts?
I was wondering if you need to liquidate some of the TSP funds to get below the allowable Medicaid eligibility assets level even if you are already receiving payouts?
Situation - Retiree has 250,000 in funds, payout is 1000 a month. Medicaid eligibility allows married couple maximum of 120,000 in assets. Does retiree need to liquidate 130,000 of TSP funds in order to be eligible or are funds no longer considered assets but income since the retiree is receiving a monthly payout.
Re: TSP Funds and Medicaid Eligibility for Retirees
Re: TSP Funds and Medicaid Eligibility for Retirees
Suggest you get advice from a good eldercare lawyer. I've read a little bit on subject at Early Retirement & Financial Independence Community website and rules can vary by state and I believe there is a 5 year look back period when determining eligibility so you need to be careful in liquidating funds. There are retirement communities that provide different levels of care and sometimes the best choice is to get into best one that you can afford before needing Medicaid as they typically will not kick you out if and when you have to rely on medicaid. Best course of action is to get answer from eldercare lawyer in the location where they are located.
