Even Retired Millionaires Still Qualify for These 5 Government Benefits

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• • Even millionaires can receive government benefits. 
  • Medicare is one of the best benefits available regardless of net worth. 
  • Millionaires can defer social security until they are 70. 
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Should you have the good fortune to become a millionaire during your lifetime, the good news is that most of your money problems go away. The better news is that even if you are a retired millionaire, there are still several government programs you still qualify for regardless of your income level. You might have thought you didn’t qualify for Medicare or a Health Savings Account, but you very much do, and these aren’t the only programs available. 

This post was updated on October 27, 2025 to clarify that Social Security benefits are taxed at 85% for high-income individuals, details regarding Medicare part A, Roth IRA rules, and specifics on taxing long-term investments.

Social Security Benefits

In the case of social security benefits, this dollar amount is owed to you regardless of your net worth. The benefit amount might be capped, and there are some tax implications (up to 85% of benefits may be taxable for higher-income recipients), but you still qualify for payouts as soon as they begin. 

The good news is that payouts start at 62, but there is a caveat. In the case of a millionaire who isn’t dependent on social security for monthly living, you can defer your payments until you are 70 and receive a larger benefit, albeit with greater tax implications. 

Medicare

Not to be confused with Medicaid, which is for low(er)-income individuals, Medicare is essentially medical care for aging individuals regardless of their net worth. As a government-sponsored program, Medicare is available to every citizen of the United States.

The downside is that as a higher-income individual, you will likely be subjected to more pay for premiums. This Income-Related Monthly Adjustment Amount (IRMAA) means you will likely pay more for Medicare Part B and Part D premiums. 

However, Part A, which covers hospital care, will retain the same premium if you make appropriate contributions through your taxes while working. Medicare Part A is premium-free only if you (or your spouse) paid Medicare taxes for 40 quarters; otherwise, there’s a monthly premium.

Of course, as a high-income earner, you may have supplemental medical coverage like a concierge doctor, but Medicare is a great safety net. 

IRA and 401K Withdrawals 

Unsurprisingly, being a millionaire when you retire can have implications on any IRAs and 401Ks you may have. The biggest news is that both an IRA and a 401K account can be tax-deferred and are used to grow worth toward retirement. 

Tax deferments aside, there are some important things to know about these types of programs. First and foremost, at 59.5 years of age, you can withdraw from these accounts without penalty. This means you won’t lose a percentage of the money being removed, but tax implications remain as this becomes income. 

In addition, once you turn 73, you are mandated to take Required Minimum Distributions (RMDs), which could also force you into a higher tax bracket. The best thing to do is work with a financial advisor so you can plan early on what the best plan would be related to diversifying your investments to soften any blow around taxes. 

Note that Roth IRAs have different rules, with no RMDs for the original owner, and qualified withdrawals are tax-free.

Health Savings Accounts

Anyone who qualifies as a millionaire may find that Health Savings Accounts (HSAs) can be compelling tools. HSAs have been specifically designed to help contribute pre-tax money toward high-deductible health plans, which can grow tax-free. Better yet, should you need this money for medical care, you can use money from Health Savings Accounts tax-free, no matter your net worth. (Note that you cannot contribute to an HSA once enrolled in Medicare, though you may still use existing HSA funds tax-free.)

Capital Gains Tax Treatment on Long-Term Investments

The good news is that capital gains tax treatment of long-term investments is not exclusive to retirement. Millionaires have long benefitted from preferential tax options for long-term capital gains. 

Any long-term investment, or those held for over a year, can be taxed lower than short-term investments held for less than a year. This is advantageous for high-net-worth individuals who may not need to withdraw money from investment or stock accounts. 

As a side benefit, there is also some strategy around taxes, as the tax rate on long-term capital gains is capped at 20%, even for millionaires. For 2025, the maximum long-term capital gains rate is 20%, plus a 3.8% Net Investment Income Tax for high earners. Top earners effectively pay 23.8% on long-term gains. This equates to lower rates than they would otherwise pay for their income-based tax bracket, which provides another benefit of long-term capital gain holds.