Can a Roth IRA be transferred into an Irrevocable Medicaid Asset Protection Trust?

Jan 7, 2019

Can a Roth IRA be transferred into an Irrevocable Medicaid Asset Protection Trust? Yes, and that transfer will not trigger income taxes, but the funds transferred will no longer be considered as a Roth. As a result, income taxes will be due on future income produced by those funds inside the trust, and capital gains taxes will be due if the investments in those funds are sold at a profit. It is important to remember that if Roth IRA funds are left outside the trust, they may have to be used up to pay for nursing home costs. This should be discussed with a knowledgeable Elderlaw attorney.

-Attorney Jack N. Alpern

Page Tools

  • Share this page SHARE
  • Print Friendly and PDF

Other Articles You May Find Useful

Who Needs a Trust?
I Heard that I Am Allowed to Give Away Assets?
Are Funds Set Aside for My Funeral Safe?
What Assets are at Risk?
Who Should be the Trustee?
Are my Retirement Funds at Risk?

Leave a Reply

  • (will not be published)

XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>