Qualified Long-Term Care

Qualified Long-Term Care

Non-taxable benefits one receives from a long-term care insurance policy covering a long-term, non-life-threatening condition. In order for the benefits to be non-taxable, one must require care for at least 90 days and must be unable to perform at least two of the activities of daily living. Qualified long-term care was instituted in the United States in 1997.
References in periodicals archive ?
Lincoln MoneyGuardA II provides income-tax-free reimbursements for qualified long-term care expenses, an income-tax-free death benefit if care is not needed, or return of premium (ROP) options, which have expanded with MoneyGuardA II.
SM ]Rider which functions as an acceleration of the life insurance policy's death benefit that can be used to pay for qualified long-term care expenses.
The Health Insurance Portability and Accountability Act of 1996 ("HIPPA") included the Tax-Qualified Long-term Care Insurance Contract, and extended tax deductibility of a number of premiums and tax exemptions for particular benefits to qualified long-term care insurance policies.
Seeking independent advice from a qualified long-term care specialist is a good place to start.
Amounts paid for qualified long-term care services are deductible as medical expenses under Sec.
Now the Pension Protection Act of 2006 allows for tax-free withdrawals from annuities with qualified long-term care benefits.
Qualified expenses include prescription drugs, qualified long-term care services and long-term care insurance, COBRA coverage, Medicare expenses (but not Medigap), and retiree health expenses for individuals age 65 and older.
The "Better Jobs, Better Care" program, jointly funded by The Robert Wood Johnson Foundation and The Atlantic Philanthropies, will issue grants to projects that test new approaches to providing a more stable and qualified long-term care staff, and evaluate the results.
An employer plan providing coverage under a qualified long-term care insurance contract is generally treated as an accident or health plan.
Amounts received under a qualified long-term care insurance policy are also excluded, although the exclusion is limited to $200 per day or the actual cost of care, whichever is greater.
Deduction limits per person for qualified long-term care premiums for 2000 tax returns are: age 40 or under, $220; age 41 to 50, $410; age 51 to 60, $820; age 61 to 70, $2,200; and age 71 or over, $2,750.
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