Every year around this time, we start sharing numbers for the following year’s planning. Here are the inflation adjusted LTC numbers for 2020 that you might find useful.
With the Asset Care product line identifying Acceleration of benefit (AOB) and Continuation of Benefit (COB) charges, the LTC premium associated with the policy is identifiable.
The “per person” age-related table numbers for premium deductibility are:
- 40 or less $430
- 41 to 50 $810
- 51 to 60 $1,630
- 61 to 70 $4,350
- Over 70 $5,430
The per diem LTC benefit limit is $380.
Our LTC Tax Guide booklet from Advanced Sales will be revised to reflect this change as well as incorporate the 2020 numbers. We hope to have the revised version ready by the first of the year.
The IRS also just published new tables for Required Minimum Distributions effective for calendar year 2021. Because life expectancies have increased from the prior tables, the process for Annuity Funding Whole Life with qualified funds should not be affected. Also note that 2020 distributions are not subject to the new tables.