Laws launched final week within the Home of Representatives would reform the tax code in an effort to make long-term care insurance coverage extra reasonably priced and accessible for older adults. It has the backing of Argentum and the American Seniors Housing Affiliation.
The Lengthy Time period Care Affordability Act was launched final week by Rep. Ann Wagner (R-MO), chair of the Home Suburban Caucus. The invoice is the Home companion to tax code laws launched within the Senate by Sen. Pat Toomey (R-PA).
“Retirement could be costly sufficient for seniors, and we must be utilizing each instrument we’ve got to make their lives simpler and extra reasonably priced,” Wagner mentioned. “This laws would just do that by offering for favorable therapy of long-term care via retirement accounts, permitting higher entry to the required care they deserve.”
The act would allow individuals to withdraw funds from their 401(okay) accounts, 403(b) accounts and particular person retirement accounts to pay for long-term care insurance coverage. As much as $2,500 of a withdrawal used to pay for long-term care insurance coverage can be excluded from earnings tax yearly. Moreover, such withdrawals can be excluded from the ten% early withdrawal penalty tax.
In response to Wagner, people from throughout the earnings spectrum would be capable of make the most of the tax profit.
Different teams supporting the laws embody the Alzheimer’s Affiliation, the Alzheimer’s Affect Motion, America’s Well being Insurance coverage Plans, Edward Jones, Lengthy-Time period Care Insurance coverage Companions, the Nationwide Affiliation of Insurance coverage and Monetary Advisors, the Nationwide Affiliation of Insurance coverage Commissioners and the Nationwide Affiliation of Well being Underwriters.