Ask the Experts

Q. My husband is older than I am. If he needs to enter a nursing home, will my IRA be considered a joint asset for determining Medicaid eligibility?

A. Medicaid eligibility rules vary by state so it depends on where you live. In some states, IRAs are considered exempt assets and are not counted in determining your husband’s Medicaid eligibility. But that isn’t the case in all states. You’ll need to consult your state’s Medicaid office.

For more information on Medicaid eligibility and toll-free numbers for each state’s Medicaid office, go online to the U.S. Department of Health and Human Services at www.cms.hhs.gov/MedicaidEligibility.

Q. If I get unemployment insurance, will I be penalized and collect a smaller amount just because I’m receiving a pension benefit once a month?

A. It depends. Unemployment benefits can be reduced or eliminated if you are receiving a pension benefit but the laws vary by state. In some states, people receiving unemployment benefits would get a reduced amount if they had previously contributed to the pension, which is usually the case in 401(k) plans. To find the rules that apply to you, contact your state’s labor department or visit your local unemployment insurance benefits office.

Q. I am 60 years old. I was in a union pension plan for nine years before the company was sold. My new employers say I’d have to quit to draw my pension. Is this right?

A. Yes, that is correct if you’re in a traditional defined benefit plan. You must be age 62 to receive a pension while you’re still working for the employer providing the plan – and then only if the employer allows it. Companies are not required by law to permit workers age 62 and older to receive their pensions while they continue to work. At your current age of 60, you would be required to quit to receive your pension.

In 401(k) plans, however, workers can receive a benefit from the plan while they are still working once they’ve reached age 59 ½ -- if their employer permits it.

For more information on defined benefit plans, go to the Internal Revenue Service online.

Source: John Turner