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Can I Opt Out of my State's LTC Payroll Tax?

Reasons to acquire long-term care insurance:

 

Possible opt-out: Proactive ownership of private long-term care insurance if your state, like Washington, implements a program and allows people to “opt-out” with private insurance coverage.

 

Confidence: Having long-term care insurance in place can provide confidence, knowing you and your loved ones will have financial protection if the need for long-term care arises.

 

Protecting assets: Long-term care insurance can help protect your savings and assets from being depleted by the high cost of long-term care.

 

Maintaining independence: By having long-term care insurance, you can ensure you can receive the care you need in a place of your choice, rather than having to rely on family members or the government.

 

Relieving burden on loved ones: Long-term care insurance can help relieve the financial and emotional burden on family members who might otherwise have to provide or pay for your care.

 

Providing dignity: By having long-term care insurance, you can ensure you will receive the care and support you need to maintain your dignity and quality of life as you age.

Currently, most states are being intentionally tight-lipped about their intentions regarding bills to pass long-term care payroll taxes on their workers. (At this time, states are not alerting residents of allowable time frames nor if they will be offering opt-outs.) However, if we take Washington as a model, to opt out of the tax in your state, you will need to acquire private long-term care insurance following Section 7702(b) of the U.S. Code 26, apply to your state's employment office, and submit proof of your exemption to your employer within the time-frame allowed.

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DON'T WAIT. Insurance lines will quickly back up and insurance companies will stop taking applicants.

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If you qualify for long term care insurance, your best chance to opt out is to obtain private policy with the following characteristics or better:

  • Policy must be Guaranteed Renewable.

  • Insured must require help with 2 ADLs for a period of 90 days to activate benefits OR have a diagnosis for a severe cognitive disability, as identified by a licensed healthcare provider.

  • Benefit must be $175 per day minimum.

  • Must include a Nonforfeiture Provision, such as reduced paid-up insurance, extended term insurance, shortened benefit period, or similar offerings approved by the appropriate State regulatory agency

Find Policy Information
An agent licensed in your state will reach out to you.
Minimum age to apply for a Long Term Care Policy: 50 by Dec 15, 2023.

Long-Term Care Tax Information and Policy Solutions

An agent licensed in your state will reach out to you.

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