Health Savings Account (HSA)
A type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. HSA money can reimburse tax qualified LTC insurance premiums based on the chart below.
Generally, life insurance with an LTC rider does not qualify.
| Attained Age in Tax Year | 2023 Limitations on Premiums |
|---|---|
| Age 40 or less | $480 |
| Age 41 to 50 | $890 |
| Age 51 to 60 | $1,790 |
| Age 61 to 70 | $4,770 |
| Age 71 & older | $5,960 |
LTC Tax Credits or Deductions
Many states offer credits or deductions for LTC insurance premiums.
Generally, life insurance with an LTC rider does not qualify.
Health Insurance Portability and Accountability Act of 1996 (HIPAA)
Favorable Tax Treatment of Qualified LTC Insurance Plans
An individual and spouse are eligible to deduct a tax qualified LTC insurance premium under IRC 7702(B) as part of their medical expenses that exceeds 10% of adjusted gross income.
Generally, life insurance with an LTC rider does not qualify.
The chart below shows the limit for the total amount of premiums deductions allowed based on age.
| Attained Age in Tax Year | 2023 Limitations on Premiums |
|---|---|
| Age 40 or less | $480 |
| Age 41 to 50 | $890 |
| Age 51 to 60 | $1,790 |
| Age 61 to 70 | $4,770 |
| Age 71 & older | $5,960 |
Tax qualified LTC insurance provides tax free benefits up to $420 a day for 2023.