It depends on the state in which your loved one lives....all the rules are different depending on the state. Please contact an Elder Law Attorney or look up the specific laws in the state where your loved one resides BEFORE you complete the Medicaid application. If your loved one is already receiving Medicaid, then you certainly need to consult with an attorney in this field to protect assets and not affect Medicaid eligibility.
There is an article on AgingCare referencing this topic: 401(k) Accounts and IRAs: How They Affect Medicaid Eligibility K. Gabriel Heiser, Medicaid Secrets
Yes, a 401k is considered an asset by Medicaid. You don’t need an attorney to tell you that. If the 401k is in payout status than Medicaid will consider it INCOME. Either way it affects Medicaid eligibility
There is an article on AgingCare referencing this topic:
401(k) Accounts and IRAs: How They Affect Medicaid Eligibility
K. Gabriel Heiser, Medicaid Secrets