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Use Health Savings Account To Pay Long Term Care Insurance Costs

The 14 million Americans with Health Savings Accounts were urged to sign-up for and use the tax-advantaged benefits to pay some or all of their long term care insurance policy costs.

 
 
long term care insurance tax deductions available to pay costs
long term care insurance tax deductions available to pay costs
PRLog - Jan. 6, 2013 - LOS ANGELES -- Los Angeles, CA - January 6, 2013    The 14 million American individuals who have health savings accounts were encouraged to use this benefit to pay for long-term care insurance protection.

"Millions of Americans now have high-deductible health insurance coverage which enables them to take advantage of Health Savings Accounts, a tax advantaged medical savings account that can be used for many costs including long-term care insurance," explains Jesse Slome, executive director of the American Association for Long-Term Care Insurance http://www.aaltci.org and author of the Guide To Tax-Qualified Long Term Care Protection.  "This is a tax advantaged way to obtain protection few are aware of."

Health Savings Accounts were established as part of the Medicare Prescription Drug, Improvement, and Modernization Act that was signed into law by President George W. Bush on December 8, 2003.  The primary advantage of the H S A is the ability to make pre-tax contributions prior to the Federal Insurance Contributions Act tax (FICA) and Medicare Tax deduction, which amounts to a savings of 7.65%.   "Since everyone is now paying two percent more in withholding than they did last year, the tax advantage is even greater," Slome adds.

For 2013, the contribution limits are $3,250 for a single individual and $6,450 for a family.  Those over age 55 can make an additional $1,000 catch-up contribution.  "The amount one can contribute to an HSA is going to be more than the cost of long term care insurance," Slome notes.  The Association's yearly Price Index revealed that a valuable policy for someone age 55 could be obtained for between $100 and $140-per-month.

"Far too few take advantage of the many tax advantages available to individuals," Slome explains.  "People thinking about long term care planning have a double advantage."  The leading long term care insurance expert outlined a strategy that he noted few are aware of.   Use the HSA to pay for all or part of premium costs during ones working years when they may not meet the threshold necessary to make health and medical expenses deductible.  Then after retiring when income is lower, meeting the deductible limits for health costs is much easier.  "In retirement, many people will find they are able to deduct the cost of long-term care insurance at a time when those tax deductions really matter," he adds.

Additional information including the 2012 and 2013 tax deductible limits for long term care insurance can now be accessed on the  American Association for Long Term Care Insurance (AALTCI) website http://www.aaltci.org/long-term-care-insurance.  The organization, established in 1998 as a non-profit trade group, advocates for the importance of planning for long term care and supports insurance and financial professionals who market LTC insurance.   To request no obligation quotes for long term care insurance costs call the organization’s offices at (818) 597-3227 or visit the Association’s website.

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Contact Email:
***@aaltci.org Email Verified
Source:American Association for Long Term Care Insurance
Phone:818-597-3227
Location:Los Angeles - California - United States
Industry:Consumer, Health
Tags:long term care, insurance, taxes, 2013
Shortcut:prlog.org/12053940
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