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Long-Term Care

Article ID: 235
Last updated: 21 Sep, 2014
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By Jason Watson ()
Posted September 2, 2014

You can purchase insurance policies that cover qualified long-term care services, and include those premiums when calculating your overall medical deduction. Qualified services include necessary diagnostic, preventative, therapeutic, curing treating, mitigating and rehabilitative services, including maintenance or personal care services. They must be required by a chronically ill person and provided by a licensed health care practitioner.

Big list, but this is referring to your typical nursing home and in-home care services usually reserved for the elderly who are unable to completely care for themselves. And Yes, we will all be there. This is probably the biggest overlooked retirement planning checkbox. Our physical longevity has outpaced our cognitive ability by several years. In other words, our bodies last longer than our minds. Here are the deduction limits for 2014-

Under 40 370
Age 41-50 700
Age 51-60 1,400
Age 61-70 3,720
Over 70 4,660

To deduct long-term care premiums you must have a Section 105 HRA or Section 125 Cafeteria Plan in place.

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