List of some specific pensions that are exempt: Pension income received from a contributory annuity, pension, endowment or retirement fund of the U.S.. To help protect your assets and ensure your Medicaid eligibility, the attorneys at Legacy Care Law Firm offer a Massachusetts guide to Medicaid for seniors.I offer these ideas: House sit. When individuals go on long trips or work out of the area, they sometimes need to hire people to live in their house. Tax information for seniors and retirees, including typical sources of income in retirement and special tax rules. If you are a Massachusetts resident, however, your benefit is not subject to state income taxes.