Can I buy LTC policy with funds from my HSA?
Health Savings Accounts (HSAs) are private accounts that millions of Americans use to pay for health care. If you own a HAS and buy qualified LTC insurance, you’ll be able to pay part or all premiums with pre-tax dollars. It helps though to consult a tax professional if you plan to purchase Long Term Care policy using HSA funds.
Is LTC Insurance Tax Deductible?
When considering LTC Insurance and HSAs, make sure to get your hands on the latest copy of Form 502 from the IRS. This form guides you regarding how much you may be able to deduct from your HAS for medical expenses. You can also learn more about LTC and taxes here.
As of 2012, any person aged 61-70 years could deduct a total of $3,500 using an HSA. Of course, this is pretty generous considered how much premiums this age limit runs. Using your HSA to pay for your Long Term Care Insurance can be a smart move. However, you need to deliberate with your CPA since there are some exceptions.
To get you going on the right footing, we’ll get you a comprehensive comparison of the biggest LTC insurance carriers in the business. All our product options are IRS tax-qualified policies. Our model allows you to compare major providers and make an informed decision right from the comfort of your home. You don’t have to go through the hustle of setting up sales appointments with local agents and suffering through the hard sell.