A Little Pool Anyone?

Here we go again – the discussion of addressing the extended healthcare (aka long term care) funding issue.  For many, self-funding ends up being the answer.  By default or by decision, people elect to bear the full burden of the cost associated with an extended healthcare event and not elect an insurance-based solution. So, here … Continue reading A Little Pool Anyone?

Q&A – Qualified Money Funding – 457

Question: Can a 457 plan be used in conjunction with Asset Care funding with qualified money? Answer:  There are two types of 457 arrangements.  One is a governmental 457(b) which can be rolled over to an IRA.  So, we would suggest that the governmental 457(b) be rolled over to an IRA, or merely take the distributions … Continue reading Q&A – Qualified Money Funding – 457

Q&A – Tax Treatment of Benefits

Question: What is the tax treatment of  LTC Benefits paid from Asset-Care or Annuity Care? Answer: Our Care Solutions portfolio functions on a reimbursement basis.  Since Reimbursement Benefits for qualified LTC services are not taxed, benefits are tax-free. As a side note, Per Diem or Indemnity Benefits are not taxed except those benefits that exceed the greater of Total Qualified … Continue reading Q&A – Tax Treatment of Benefits

Summary of Individual Tax Deductions

Individual taxpayer who does not itemize No deduction IRC Sec 63(b) Individual taxpayer who itemizes deductions Treated as medical insurance premiums.6 Limited to the lesser of the actual premium paid or the amount per person from an age-related table that caps maximum deductible premiums. IRC Sec 7702B(a)(1) Premium deduction is effective to the extent that the deductible premium above … Continue reading Summary of Individual Tax Deductions