“Layin’ It on the Line: The hidden IRS rule that could save your retirement from long-term care costs,” by Lyle Boss, Standard-Examiner
“When it comes to retirement planning, most people focus on the ‘big three’ of income, taxes, and investments. But there’s another silent threat that can derail even the best-laid plans–long-term care costs. … The problem? Traditional retirement accounts like IRAs and 401(k)s were never designed with these kinds of expenses in mind. Withdrawals are taxable, and using pre-tax money to cover long-term care, or LTC, bills can trigger massive tax liabilities. But here’s the good news: The IRS has quietly given retirees a way to fight back — if you know where to look.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
Click through for the tax tips, but realize this: the sad truth is that people with enough savings to need those tips easily shelter their wealth in exempt resources, save out enough “key money” to get the best LTC Medicaid provides, and transfer the cost to taxpayers by shifting quickly to the welfare program. To make sense of what ails LTC, read the Paragon Health Institute’s “Long-Term Care: The Problem” and “Long-Term Care: The Solution” and watch this “virtual LTC event” featuring age wave visionary Ken Dychtwald and leading LTC researchers. To find ample private funds for LTC, check out “Medicaid’s $100+ Billion Leak.” For what not to do, see “Medi-Cal-amity: California’s Reckless Expansion of Medicaid Long-Term Care to the Affluent.” Much more on long-term care here.