LTC and Retirement Security Act, 2003 (HR 2096)

Overview:

108th Congress (2003-2005)

Type: Tax Deductions; Use of FSA Funds and Cafeteria Plans

Key Components:

  • Companion bill to S. 1335 from 108th Congress. Phase in deductions for LTC insurance premiums over 5 years, starting at
    25% and going up to 100% by 2008 and beyond. Premiums would
    be tax-deductible without requiring itemized deductions and not subject to the 7.5% medical expenses of AGI.
  • Deductions are limited by age-related caps determined by Individual Retirement Accounts that are adjusted annually for inflation protection.
  • Allow LTC insurance under cafeteria and FSA plans. Includes a phased in
    family caregiver tax credit.

Key Authors:

  • Rep. Nancy Johnson (R-CT)

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