LTC Affordability Act (H.R. 7107)

Key Components:

• Reintroduces S. 4820 from 116th Congress.
• Amend the IRC to expand the use of retirement plan funds for purchasing LTC insurance and for other purposes.
• Exclude from taxable income amounts withdrawn from eligible retirement amounts if used for LTC insurance premiums, including riders to a life insurance policy, up to $2,500, subject to cost-of-living adjustments annually.
• Allow a government retirement plan to provide up to $3,000 for the purchase of health and/or LTC insurance without those funds being considered taxable income.