SERVICES : Financial Services IRS ANNOUNCES INCREASED DEDUCTIBILITY LIMITS FOR LONG-TERM CARE INSURANCE Oct 29, 2007 by Insurance Newscast Washington DC: The Internal Revenue Service (IRS) has announced increased deductibility levels for long-term care insurance policies purchased in 2008. According to Jesse Slome, Executive Director of the American Association for Long-Term Care Insurance (AALTCI), “Millions of small and mid-sized business owners are still unaware that the cost of long-term care insurance protection for themselves and their spouse may be fully tax deductible." “Tax advantaged long-term care insurance is one of the few remaining significant tax-savings benefits for owners and self-employed individuals," AALTCI's Director states. "Discounts for small groups are increasingly available for businesses, even those with 10 or fewer employees." There is still time to tax advantage of tax deductions in 2007 and also benefit from the increased deductible limits next year. In addition to the federal tax deduction many states now offer tax incentives for individuals purchasing tax-qualified long-term care coverage. The deductible limits under Section 213(d)(10) for eligible long-term care premiums includable in the term ‘medical care’ are as follows: Age before close of Tax Year is 40 or less: 2007 Deductible amount = $290 2008 Deductible amount = $310 Age before close of Tax Year is 41 to 50: 2007 Deductible Amount = $550 2008 Deductible Amount = $580 Age before close of Tax Year is 51 to 60: 2007 Deductible Amount = $1,110 2008 Deductible Amount = $1,150 Age before close of Tax Year is 61 to 70: 2007 Deductible Amount = $2,950 2008 Deductible Amount = $3,080 Age before close of Tax Year is more than 70: 2007 Deductible Amount = $3,680 2008 Deductible Amount = $3,850 Source: IRS Revenue Procedure 2006-53 (2007 limits) and 2007-66 (2008 limits) The American Association for Long-Term Care Insurance (www.AALTCI.org) is the national association serving insurance and financial professionals who provide long-term care financing solutions. The Association established Long-Term Care Awareness Week, November 4-10, 2007.
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Montgomery Insurance and Investments Agency, Inc. is a locally owned and operated independent insurance agency with specialists in personal and commercial insurance, financial services including investments and employee benefits. They have two conveniently located offices in the downtown areas of Jamestown and Xenia.
Left to right: Jim Saner, Eric Montgomery, Brad Montgomery and Roy Montgomery. "Prompt efficient service." - Paul & Edith Calloway DISCLAIMER - Securities and investment advisory services offered through Tower Square Securities, Inc., a member of FINRA / SIPC. Montgomery Insurance and Investments Agency, Inc. is not a registered investment advisor or a securities brokers dealer and has no affiliation with Tower Square Securities, Inc. Eric Montgomery is licensed in AL, CA, FL, GA, IL, IN, MA, MI, MO, NC, OH, VA, VT, WI, WV for the sale of security products. Roy Montgomery is licensed in OH for the sale of security products. Don Cain is licensed in OH for the sale of security products. |
| Xenia: 114 South Detroit Street • Xenia, OH 45385 • (937) 372-7646 Jamestown: 1 West Washington Street • Jamestown, OH 45335 • (937) 675-9321 |
| CD200601302 Exp 07/2007 |