Image source: Flickr user 401(k) 2012
ABC = c’mon, it’s the alphabet!
LTCI = Long-Term Care Insurance
HSA = Health Savings Account
According to AHIP Health Savings Account Census, over 17.4 million Americans are covered by HSA eligible insurance plans. If you have clients that own a HSA or are eligible for one, they may be able to use pre-tax dollars to pay for all or some of their LTC Insurance. Check out this Genworth piece to learn more and ask your clients who are W2 employees if they have one…it’s a great way to reduce the net cost of the coverage.
IRS Notice 2004-50, Q and A 41 (HSAs) – tax-qualified LTCI premiums are a qualified medical expense. As a result, an individual may withdraw money tax-free from their HSA to pay tax-qualified LTCI premiums. Additional Details -http://www.irs.gov/publications/p502/ar02.html#en_US_2013_publink1000178974