National Association of Insurance and Financial Advisors

NAIFA Supports Toomey Proposal on Retirement Accounts and Long-Term Care

Sen. Pat Toomey (R – PA) has released a policy proposal to increase the affordability of long-term care insurance, which NAIFA supports. The draft legislation provides owners of retirement accounts greater flexibility when using those funds to purchase long-term care insurance (LTCI).
 
The proposal would:
  • Allow individuals to use funds from 401(k), IRA, and some other retirement accounts to buy LTCI without incurring 10% early withdrawal penalties
  • Exclude retirement account withdrawals of up to $2,000 per year to pay for LTCI from income taxes
  • Extend a similar benefit to LTCI that is now available for life insurance
 
NAIFA and the ACLI sent a joint statement for the record to the U.S. Senate Finance Committee’s Health Care Subcommittee, which Toomey chairs, outlining these and other suggestions to help Americans understand the need for LTCI and more easily acquire coverage.
 
“Seven out of ten older Americans develop a need for long-term care services, but few have planned for the financial burden of these services, which Medicare generally does not cover,” said NAIFA CEO Kevin Mayeux. “Long-term care insurance can be part of the solution. NAIFA commends Sen. Toomey for his leadership on this issue, and urges Congress to take the necessary action to give Americans greater flexibility to address their long-term care risk.”
 
NAIFA members provide for the insurance and financial services needs of Main Street Americans, helping them mitigate life’s inevitable risks, obtain financial security, and achieve prosperity. NAIFA has established the Limited & Extended Care Planning Center to raise awareness of long-term care and related issues.
 
  • Posted November 21, 2019 IN


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