By now you’ve probably heard that 15 million Americans are expected to need long-term care (LTC) by 2050 and 52% of people over the age of 65 will need LTC in their lifetime. Maybe you’ve considered talking to your financial advisor or someone who specializes in long-term care insurance (LTCI). Perhaps you’re still concerned about the cost of an LTCI policy dipping into your budget. Did you know that you can use your Health Savings Account (HSA) to pay for LTCI premiums?
In order to use your HSA to pay LTCI premiums the policy must be considered tax-qualified, which most already are. You can speak to an LTC Specialist if you have questions about qualifying. The amount you can withdraw tax-free depends on your age, and will go up with each decade.
|Tax-free HSA Withdrawal Allowed to Pay LTC Premiums|
|40 & under||$420|
|41 – 50||$790|
|51 – 60||$1,580|
|61 – 70||$4,220|
|71 & up||$5,270|
If you choose not to utilize your HSA to pay a portion of your LTCI premiums, you may still be able to qualify those premiums as a tax-deductible medical expense. Review LTC Consumer’s 2018 LTCI Tax Guide for more ways to save. Or chat with an LTC specialist who can answer all your questions.
“The amount you can withdraw tax-free depends on your age.”
How does that saying go? Work smarter, not harder. The same applies for your money. Make your money and your existing investments work for your financial future; the kind of financial future where your retirement, your family, and your pride are all protected. Check out LTC Consumer today and learn more about qualifying for LTCI, planning for your future, and choosing an LTC plan that fits your needs.