Using Qualified Money for LTC

You probably know some people with IRAs, 401(k)s, or 403(b)s – right?


Qualified dollars have their issues 

  • You can’t avoid eventually paying taxes on pre-tax money that grows tax-deferred.
  • Required Minimum Distributions (RMDs): Money needs to be taken out beginning at 72, whether your client wants it or not.
  • When qualified money passes to heirs at death, it is taxed at the heir’s current tax rate.

In our most recent LTC Coffee Break, Michael Florio and I discussed using qualified money to fund an Asset Care policy.  To catch up on this episode, you can go to our LTC Coffee Break Channel.

Our solution

  • Reposition qualified money into Asset Care Annuity Funding Whole Life via direct transfer or rollover.
  • The income base is credited with up to a 20% bonus.
  • Annual distributions fund a 10-pay whole life policy that can be used for qualifying long-term care.
  • LTC benefits can be payable for the lifetime of both insureds.
  • The death benefit passes to heirs at death generally tax-free.

Even better

  • Qualified money is reserved for LTC expenses — no need for your clients to deplete their portfolios at an inopportune time.
  • Cover both spouses using one qualified account with no ownership issues.
  • Annual distributions over 10 years count toward satisfying RMDs.
  • Death benefit can help offset taxes owned on other legacy funds left to heirs.

If you have any questions, please contact Justin Fox at (844) 658-3725 or via email at  Of course, I can be reached via text or phone at (678) 512-9627 and via email at

Remember. “The Great Retirement Income Gap” consumer webcast is offered every Tuesday evening at 7 pm (eastern) is running until August 25.  For more information or to customize your consumer webcast strategy, contact me directly.

And … another reminder, every Tuesday morning at 10am (eastern and pacific), join Michael Florio and me for LTC Coffee Break where we share a conversation over a cup of coffee.


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