Long Term Care

Benefits of PPA compliant Fixed Annuities:

  • Tax-deferred growth
  • Benefits received for qualified long term care expenses are income tax-free.
  • Existing non-qualified annuities may be exchanged tax free for a PPA compliant annuity by utilizing IRC Section 1035.
  • Estate Benefits are not forfeited.
How are you going to fund your
future Long-Term Care Expenses?

To learn more about Long Term Care, please contact John Harty.

415-407-4991

John Harty is a registered representative with, and Securities and Advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates.

According to the U.S. Department of Health and Human Services, 70% of people over the age of 65 will need l ong-term care services. Unfortunately, traditional long-term care policies can be very expensive and can quickly drain a person's savings and investments.

Fortunately the Pension Protection Act (PPA) which was signed into law in 2006 and enacted on January 1, 2010 provides more options for people planning for long-term care. Section 844 of the PPA specifically addresses the treatment of annuity contracts with a long-term care insurance feature.
Do You Own an Annuity?
Use your Annuity to pay for Long Term Care with Tax-Deferred Dollars

Before the long term care provisions of the PPA took effect, you had to pay taxes on the growth inside of your annuity before paying long term care expenses.

Now, if you have an existing non-qualified annuity, you may be able to transfer the proceeds from your annuity tax-free to pay for future long-term care expenses without owing taxes on the gains in your annuity.

This is a hypothetical example and is not representative of any specific investment. Your results may vary. Fixed Annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.

John F. Harty, AIF®

Director of Wealth Management

CA Insurance Lic# 0J21486

John.Harty@LPL.com

400 Montgomery Street  Suite 100  San Francisco, CA 94104  Phone: 415-407-4991

Not FDIC Insured Not Bank Guaranteed May Lose Value
Not Insured by any Federal Government Agency Not a Bank Deposit