Tax-Advantaged LTCI and Pension Protecti

Posted on by
Reply

Tax-Advantaged LTCI and Pension Protection Act

Have you heard about the amazing new tax laws surrounding Long Term Care Insurance and annuities thanks to the Pension Protection Act?

Since 2010, you can purchase an annuity contract offering LTCI benefits and receive your LTCI benefits tax-free. And withdrawals from these non-qualified annuities used to pay for qualified long-term care expenses are no longer considered taxable income, regardless of cost basis. You can even use a 1035 exchange to transfer the value from an existing annuity into a multi-purpose one that includes long-term care benefits with no gain or loss, meaning it is not taxable.

Does this sound like something you might be interested in?

Unlock the Power of Long-Term Care Annui

Posted on by
Reply

Unlock the Power of Long-Term Care Annuities

Although more individuals are beginning to recognize the importance of long-term care insurance, some are still hesitant to buy something they may never need. One of the largest advantages of long-term care annuities over traditional insurance policies is that the annuity’s value will increase and be passed to beneficiaries if long-term care services are never needed.

Long-term care annuities are ideal for avid savers who often choose to put their excess funds in a CD account with the intention to pay for long-term care themselves should the need arise. However, investing that money into a long-term care annuity can be a smarter option because it helps prevent retired individuals from running out of money while still covering long-term care bills. Also, annuities grow tax-deferred while CDs require 1099 forms every year (even if there is no gain in the CD).

Although applying for long-term care annuities involves medical underwriting, the requirements may sometimes be less strict than stand-alone long-term care insurance. As a result, this type of protection can be a great alternative for less healthy people who may not qualify for traditional coverage.

Long-term care annuities offer an ideal mixture of retirement income and asset protection from future care needs. Contact us today for a no-cost, no obligation consultation on your long-term care planning options. 612-454-4400

http://ow.ly/i/2hOMV