Here is the scenario. You have a client who is 75 years old and has positioned a her emergency healthcare funds in a fleet of non-qualified deferred annuities. In fact, her intention is to liquidate her annuities to pay for her care.
As you know, those gains will be taxed at distribution and could potentially trigger some unintended consequences. Aside from impacting her income tax rates, the taxable portion of those distributions could impact means-tested benefits like her Medicare premiums. We have a solution that can help.
As a matter of fact, we can not only leverage those distributions for long term care into tax-free money but we can make far bigger. Using Annuity Care II, a tax-free 1035 exchange of $100,000 can create a pool of $250,000 of tax free long term care benefits that will provide $6,250 each month for at least 60 months.
Again, this is all made possible due to the Pension Protection Act of 2006 and the leverage provided by adding the continuation of benefit rider on the Annuity Care policy.
Want more information? Contact either Justin Fox via email at email@example.com or phone at (844) 658-3725, or you can reach me by email at firstname.lastname@example.org or call/text at (678) 512-9627.
The ideas and information shared by Fridays with Fisher is for use by financial professionals and is not intended for distribution to the general public.