Contact Us Today 805-719-2246


New Bill Could Make Long-Term Care Insurance More Affordable

Posted by Kent Keating | Apr 12, 2022 | 0 Comments

Legislation introduced last week in the House of Representatives would reform the tax code in an effort to make long-term care insurance more affordable and accessible for older adults.

A new bill aimed at making long-term care insurance more affordable has the backing of Argentum and the American Seniors Housing Association.

McKnight's Senior Living's recent article entitled “Bill would reform tax code to make long-term care insurance more affordable, accessible” reports that the Long Term Care Affordability Act was introduced last week by Rep. Ann Wagner (R-MO), chair of the House Suburban Caucus. The bill is the House companion to tax code legislation introduced in the Senate by Sen. Pat Toomey (R-PA).

“Retirement can be expensive enough for seniors, and we should be using every tool we have to make their lives easier and more affordable,” Wagner said. “This legislation would do just that by providing for favorable treatment of long-term care through retirement accounts, allowing greater access to the necessary care they deserve.”

The new legislation would allow seniors to withdraw funds from their 401(k) accounts, 403(b) accounts and individual retirement accounts to pay for long-term care insurance.

The bill provides that up to $2,500 of a withdrawal used to pay for long-term care insurance would be excluded from income tax annually. These withdrawals would also be excluded from the 10% early withdrawal penalty tax.

“Argentum is proud to support the Long-Term Care Affordability Act, legislation to help more Americans better financially prepare for their long-term care needs,” Argentum President & CEO James Balda told McKnight's Senior Living.

About 10,000 people now are turning age 65 every day in the U.S.. Estimates are that up to 70% will need some form of care in their lifetimes, he added.

According to Wagner, individuals from across the income spectrum would be able to take advantage of the tax benefit.

“Unfortunately, far too few Americans have adequate savings for retirement, let alone for their health and personal care,” Balda said. “We applaud Sen. Toomey and Congresswoman Wagner for their leadership in helping more Americans better access the tools to meet their future care needs.”

There are a number of other groups supporting the legislation. They include the Alzheimer's Association, the Alzheimer's Impact Movement, America's Health Insurance Plans, Edward Jones, Long-Term Care Insurance Partners, the National Association of Insurance and Financial Advisors, the National Association of Insurance Commissioners and the National Association of Health Underwriters.

Call an experienced Thousand Oaks Estate Planning Attorney with questions about Long-Term Care Insurance. Book a Call

Reference: McKnight's Senior Living (March 22, 2022) “Bill would reform tax code to make long-term care insurance more affordable, accessible”

About the Author

Kent Keating

Kent W. Keating Founding Attorney Get to Know Kent Keating Serving Clients Throughout the Conejo Valley and Beyond Since 1986 Attorney Kent W. Keating has provided legal services to individuals, families and businesses primarily in the legal areas of Wills, Trusts, Estate Planning, Trust ...


There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Contact Us Today

Law Offices of Kent W. Keating is committed to answering your questions about Estate Planning and Business Law issues in Westlake Village, California. We offer consultations and we'll gladly discuss your case with you at your convenience. Contact us today to schedule an appointment.