Hi. My husband has ALS, and we are currently private paying for care (at $35/hr). I met with a lawyer today to talk about qualifying for Medicaid to pay for care, and she said that the non-applying spouse can only have $120,000 assets including 401K. One common thing that is done is to pull your 401K out except for the 120,000 and put it into a Medicaid compliant annuity, and then take a dispersement from that monthly. That way you can avoid paying taxes on the amount withdrawn. Has anyone done this? Pros and cons? We would be pulling around 500K out. We are in Oregon. I do plan to retire early, maybe in 5 years.