1 in 10 people age 65 and older and 1 in 3 people age 85 and older have Alzheimer’s/dementia.
Paying for caregiving help is not cheap.
You could easily spend almost $100,000 a year!
Do you have a non-qualified (non-IRA) annuity that you’ve had for a while now?
Studies have shown that most people that have annuities intend to use them to help pay for long-term care services.
Here’s the problem.
When you take money out of your annuity the interest comes out first and is taxable as ordinary income.
So if you’ve had your annuity for a while, a big chunk of it is probably taxable.
This could bump you up into a higher tax bracket and even cause up to 85% of your Social Security to be taxed.
Most people have these kinds of annuities.
Did you know that there is a special type of annuity where any money taken out, if used for long-term care, is TAX-FREE?
It’s a plain vanilla annuity but the difference is it’s PPA complaint.
PPA stands for Pension Protection Act.
It’s a law that went into effect way back in 2010.
It says that any payments from a PPA compliant annuity, if used to pay for long-term care services, are NON-TAXABLE.
In other words, TAX-FREE!
This is a good option if you don’t want to pay for or can’t qualify for traditional long-term care insurance.
For a FREE analysis of your annuities, call me at 714-994-0599 or email me at Karl@RetirementPlanningAdvisors.com.
We’ll need your account value and how much you originally deposited (if you know this).
OK, that’s it.
The rest is up to you.