General Specifications for Medicaid Compliant Annuities (MCA)
Note: specifications listed below can vary per annuity policy or carrier.
Issue Ages: 18-100 (not to exceed life expectancy per SSA tables)
Minimum premium to fund a Medicaid annuity: $5,000
Maximum premium to fund Medicaid annuity: $500,000 (pre-approval needed above $500k)
Type of funds accepted: both qualified and non-qualified (IRA, 401k, Roth, checking/savings accounts, etc.)
Monthly Payout Terms: 2-120 months (pre-approval needed for 120-360 month terms)
Medicaid Annuity Contract Restrictions:
- Irrevocable
- Non-assignable
- Non-transferable
- Actuarially sound
- Fixed amount paid out monthly
- No cash, surrender or loan value
- No additional withdrawals allowed
- Can not add additional funds
- Owner and annuitant must be the same person
Death Benefit
Upon death of the owner/annuitant remaining monthly annuity payments will continue to named beneficiaries. A lump sum option is also available to named beneficiaries subject to fees.
Free Look Period
After the annuity is issued and delivered, the annuity owner will have a set number of days to look over the annuity and, if an error is found, reject the annuity to allow for corrections.