Welcome!

News Feed Item

Long Term Care Insurance Tax Deduction Strategy Frequently Overlooked

Boomers Using 'Buy Now -- Deduct Later' Tax Reduction Strategy Can Save Reports the American Association for Long Term Care Insurance

LOS ANGELES, CA -- (Marketwired) -- 03/04/14 -- The future tax deductibility of long term care insurance premiums is overlooked by millions of working age baby boomers says a leading expert.

"An individual can deduct as much as $4,660 for long term care insurance premiums paid in 2014," explains Jesse Slome, director of the American Association for Long Term Care Insurance (AALTCI), the national trade group. The maximum amount for 2013 is $4,550. "During their working years, individuals rarely qualify for the long term care insurance tax deduction. After retirement, qualifying is typically easier."

The Internal Revenue Service considers tax-qualified long term care insurance premiums a medical expense for individuals. The yearly maximum amount depends on the insured's attained age at the close of the taxable year. "Someone older than 50 but younger than 60 can deduct up to $1,400 ($2,800 for a same-age couple)," Slome notes. An individual age 70 or older can include up to $4,660 ($9,320 for a same-age couple). The amounts are indexed for inflation and increase each year.

"During your working years, it's hard to take advantage of the long term care insurance tax deduction," Slome admits. "Your salary or self-employed income makes meeting the IRS-required threshold difficult." Only 22 percent of the 10.4 million tax returns filed by individuals between 55 and 65 who itemized deductions in 2011 had medical and dental expenses in excess of the limitation.

After retirement age the reverse is true. "Your salary income drops or disappears completely making it far more likely you'll be deducting medical expenses," Slome shares. IRS data validates that nearly 60 percent of the 8.1 million tax filers age 65+ who itemize deductions had medical expenses in excess of the limitation.

"After retirement owning long term care insurance can help lower your tax bill," Slome says. "But, it's best to obtain this coverage prior to retirement because the costs are lower and you are more likely to meet health qualification requirements," the expert adds. "The 'Buy Now -- Deduct Later' strategy secures your protection. The future tax deduction is an extra benefit for your post-retirement years."

Good-Better-Best Approach To Long Term Care Insurance Planning

Slome advocates a 'Good, Better, Best' approach to long term care insurance planning. "For a couple both age 60, good coverage provides each spouse with $164,000 of potential benefits and costs about $165-per-month," Slome explains. Better coverage takes advantage of the Guaranteed Purchase Option now offered by some insurers. "One of the most overlooked provisions this allows you to increase your benefits in future years even if your health has changed," he notes. "In 2014, a typical 55-to-60 year old couple should expect to pay anywhere from $200 to $300 monthly for coverage that provides them with future access to roughly $700,000 of benefits when they reach age 85."

Costs for insurance can vary significantly as do policy options and features. To compare long term care insurance costs connect with a designated specialist by calling the American Association for Long-Term Care Insurance at (818) 597-3227 or visit the organization's website at www.aaltci.org.

The Association's 2014 Sales Summit offers free online streaming for insurance agents and financial advisors. For information and no-cost registration visit Virtual Insurance Conferences and Expos at www.insuranceexpos.com.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2533105

Add to Digg Bookmark with del.icio.us Add to Newsvine

Jesse Slome
American Association for Long-Term Care Insurance
Email Contact
Phone: 818-597-3227

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
Redis is not only the fastest database, but it has become the most popular among the new wave of applications running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 18th Cloud Expo, Dave Nielsen, Developer Relations at Redis Labs, will shares the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...