The Little-Known Tax on Roth 401(k) Distributions
There are two main types of employee retirement savings plans: the traditional 401(k) and the Roth 401(k). Distributions...
Read moreIn recent weeks, the second Trump administration initiated a comprehensive restructuring and downsizing of the United States Department of Health and Human Services (HHS), leading to significant staff reductions and organizational changes. The department is responsible for overseeing a vast array of programs. These include Medicare and Medicaid as well as offices that help coordinate services for people who qualify for both types of benefits. A host of other programs within the HHS focus on food and drug safety, disease prevention, patient safety, health research, anti-poverty efforts, and more.
Along with buyouts and retirements, the layoffs will bring full-time staff at the HHS down to about 62,000 from 82,000 and will purportedly boost savings for the agency by about $2 billion annually.
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However, these actions are raising concerns among advocates and some lawmakers regarding their potential effects on older adults and people with disabilities, including how they will affect far-reaching programs such as the Administration for Community Living (ACL), Meals on Wheels, and the Low Income Home Energy Assistance Program (LIHEAP).
The ACL, established in 2012 to support community living for older adults and individuals with disabilities, is set to be dismantled. Its functions are being integrated into other HHS agencies, including the Administration for Children and Families and the Centers for Medicare and Medicaid Services (CMS).
Community living advocates argue that this fragmentation could disrupt coordinated services essential for these populations. According to Disability Scoop, this move is also alarming for advocates because the ACL was established as a centralized hub to promote efficiency and prevent duplication.
Meanwhile, the HHS states that the changes to the ACL will not impact Medicare or Medicaid services.
Meals on Wheels, another program whose funding and support is overseen by the ACL, delivers more than 200 million meals to homebound seniors and people with disabilities nationwide. It also faces potential service disruptions under the HHS restructuring. Meals on Wheels America expressed concerns that these changes could hinder their ability to provide essential nutrition and safety visits to millions of vulnerable Americans.
“We are extremely worried about the impact this workforce reduction and dismantling of key functions will have on seniors and the vital programs that serve them,” Meals on Wheels America President and CEO Ellie Hollander and Bob Blancato, executive director of the National Association of Nutrition and Aging Services Programs, said in a statement.
The Trump administration has terminated the entire staff of the Division of Energy Assistance, which oversees LIHEAP, a $4.1 billion program assisting approximately 6 million low-income households with heating and cooling costs.
Some state officials are expressing concern about whether federal funding and the administration of energy assistance programs will continue. Thirteen U.S. senators, including Republicans Susan Collins of Maine and Lisa Murkowski of Alaska, wrote a letter to HHS Secretary Robert Kennedy, Jr., urging him to reverse the decision, highlighting potential harm to elderly and low-income families.
“Access to affordable home energy is a matter of health and safety for many low-income households, children, and seniors,” they wrote. “To that end, we urge you to reverse course on any staffing or funding cuts that would jeopardize the distribution of these funds to our constituents.”
The cuts to HHS’ personnel and the closure of about half of its regional offices will also affect the department’s ability to oversee Medicare and Medicaid health care facilities, such as nursing homes, hospitals, and dialysis centers.
According to Chiquita Brooks-LaSure, the most recent administrator of the CMS, the drastic changes within the HHS are causing “devastating disruption,” including to oversight of nursing homes. Since HHS regional offices play a key role in nursing home enforcement, closing a significant portion of them could affect the health, safety, and comfort of thousands of older adults across the country.
In another letter addressed to Secretary Kennedy, nearly 40 lawmakers wrote that the HHS cuts removed the “staff responsible for conducting audit and compliance activities, ensuring safety in our nation’s nursing homes, hospitals, and other settings, providing coverage for innovative therapies, and developing payment models that improve care and lower costs for patients.
“Your claim that decreasing the CMS workforce … ‘will not impact Medicare and Medicaid services,’ without explanation, is unfathomable and incorrect,” the letter continues.
The restructuring and staff reductions at HHS could have far-reaching consequences, advocates warn:
Hundreds of advocacy groups are pushing against the changes, asking Congress, for instance, to halt the dismantling of the ACL. Some organizations are calling for the HHS to involve them in future discussions. Among them is the ANCOR Foundation, which urged the HHS to “first seek input from federal partners, community groups, and other stakeholders that will be directly impacted.” Two members of the Senate health committee have also invited Kennedy to testify on the HHS changes.
During uncertain times, it is wise to take stock of one’s assets and create a plan that factors in a potential reduction in government benefits and other forms of public assistance. As you plan for the future, whether it is assessing your long-term care needs, applying for Medicaid, or understanding your rights, an elder law attorney in your area can help you create a plan that fits your unique situation.
There are two main types of employee retirement savings plans: the traditional 401(k) and the Roth 401(k). Distributions...
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Read moreIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MOREIn addition to nursing home care, Medicaid may cover home care and some care in an assisted living facility. Coverage in your state may depend on waivers of federal rules.
READ MORETo be eligible for Medicaid long-term care, recipients must have limited incomes and no more than $2,000 (in most states). Special rules apply for the home and other assets.
READ MORESpouses of Medicaid nursing home residents have special protections to keep them from becoming impoverished.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MORECareful planning for potentially devastating long-term care costs can help protect your estate, whether for your spouse or for your children.
READ MOREIf steps aren't taken to protect the Medicaid recipient's house from the state’s attempts to recover benefits paid, the house may need to be sold.
READ MOREThere are ways to handle excess income or assets and still qualify for Medicaid long-term care, and programs that deliver care at home rather than in a nursing home.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
READ MOREMost states have laws on the books making adult children responsible if their parents can't afford to take care of themselves.
READ MOREApplying for Medicaid is a highly technical and complex process, and bad advice can actually make it more difficult to qualify for benefits.
READ MOREMedicare's coverage of nursing home care is quite limited. For those who can afford it and who can qualify for coverage, long-term care insurance is the best alternative to Medicaid.
READ MOREDistinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.
READ MORELearn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.
READ MOREUnderstand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.
READ MOREWe need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.
READ MOREDistinguish the key concepts in estate planning, including the will, the trust, probate, the power of attorney, and how to avoid estate taxes.
READ MORELearn about grandparents’ visitation rights and how to avoid tax and public benefit issues when making gifts to grandchildren.
READ MOREUnderstand when and how a court appoints a guardian or conservator for an adult who becomes incapacitated, and how to avoid guardianship.
READ MOREWe need to plan for the possibility that we will become unable to make our own medical decisions. This may take the form of a health care proxy, a medical directive, a living will, or a combination of these.
READ MOREUnderstand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.
READ MORELearn who qualifies for Medicare, what the program covers, all about Medicare Advantage, and how to supplement Medicare’s coverage.
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READ MOREUnderstand the ins and outs of insurance to cover the high cost of nursing home care, including when to buy it, how much to buy, and which spouse should get the coverage.
READ MOREWe explain the five phases of retirement planning, the difference between a 401(k) and an IRA, types of investments, asset diversification, the required minimum distribution rules, and more.
READ MOREFind out how to choose a nursing home or assisted living facility, when to fight a discharge, the rights of nursing home residents, all about reverse mortgages, and more.
READ MOREGet a solid grounding in Social Security, including who is eligible, how to apply, spousal benefits, the taxation of benefits, how work affects payments, and SSDI and SSI.
READ MORELearn how a special needs trust can preserve assets for a person with disabilities without jeopardizing Medicaid and SSI, and how to plan for when caregivers are gone.
READ MOREExplore benefits for older veterans, including the VA’s disability pension benefit, aid and attendance, and long-term care coverage for veterans and surviving spouses.
READ MOREGet a solid grounding in Social Security, including who is eligible, how to apply, spousal benefits, the taxation of benefits, how work affects payments, and SSDI and SSI.
READ MORELearn how a special needs trust can preserve assets for a person with disabilities without jeopardizing Medicaid and SSI, and how to plan for when caregivers are gone.
READ MOREExplore benefits for older veterans, including the VA’s disability pension benefit, aid and attendance, and long-term care coverage for veterans and surviving spouses.
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