Lawmakers are proposing a new vehicle for helping Americans cover the cost of long term care.
Sens. Blanche Lincoln, D-Ark., and Gordon Smith, R-Ore., have introduced S. 504, a bill that would permit individual taxpayers to contribute up to $5,000 per year to “long term care trust accounts.”
Taxpayers could receive a refundable 10% tax credit for LTC trust contributions, representatives for the senators say.
Interest accrued on the accounts would be tax free, and funds could be withdrawn for the purchase of LTC insurance or to pay for long term care services.