Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Retirement Planning > Saving for Retirement

LTC Ta Break Bill Returns To Congress

Your article was successfully shared with the contacts you provided.

Efforts to create an “above the line” tax deduction for consumer long term care insurance premium payments are back on the agenda in the U.S. House of Representatives.[@@]

Reps. Nancy Johnson, R-Conn., and Earl Pomeroy, D-N. D., have introduced “The Long-Term Care and Retirement Security Act of 2005,” H.R. 2682, an LTC tax break bill based on a similar bill introduced in 2003.

The earlier bill died in the House Ways and Means Committee, but a measure that would have let taxpayers use health savings accounts to buy LTC insurance came close to passing in 2003.

In addition to creating a new tax deduction for LTC insurance premiums, the new bill would provide a tax credit of at least $1,000 for givers and recipients of long term care. Eventually, the credit would increase to $3,000.

The American Council of Life Insurers, Washington, is “encouraged by efforts to secure this integral component of retirement security for individuals facing the increasing costs of long-term care services,” ACLI President Frank Keating says in a statement about the new bill. “Private long-term care insurance ensures Americans will have access to the assistance they want and need in retirement while protecting their retirement savings.”


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.