What federal employees need to know about long-term care expenses.
Ed hosts a Long-Term Care Webinar for Federal Employees -
Is Purchasing LTC Insurance the Solution?
Alternatives to Purchasing LTC Insurance
There are some alternatives for federal employees and retirees who have not purchased LTC insurance, namely “self-insurance.” “Self-insurance” means setting aside funds to be used to pay future LTC expenses, should they happen. For federal employees, “mentally setting aside” a portion of the TSP accounts to be used to pay for possible LTC expenses is an example of “self-insuring.” The same can be said about setting funds up in an IRA. Roth TSP and Roth IRAs. Roth accounts are particularly attractive and recommended because withdrawals from these accounts are tax-free.
The advantage of “self-insuring” for potential future LTC expenses is obvious. In case LTC is not needed, or if an individual dies before ever needing LTC, then any funds set aside should be inherited by a named beneficiary. The same cannot be said when an LTC insurance policyholder dies. Upon the death of the LTC insurance policyholder, all LTC insurance premiums paid by the deceased policyholder will be kept by the insurance company.
LTC Action Plan for Federal Employees and Retirees
The challenges associated with LTC affect many federal employees and retirees. The challenges are growing and will continue to grow in the future, especially with employees who are in mid-career. Many of these employees are addressing their future LTC and are currently dealing with parents and/or parents-in-law LTC needs..
Federal employees and retirees who are interested in learning more about LTC including the Federal Long Term Care Insurance Program are invited to attend a 3-hour webinar entitled “Long Term Care” presented by Serving Those Who Serve”. The webinar presents the options for paying for LTC and an overview of how LTC insurance works. here is no fee to attend the webinar. To attend, please register by clicking here. The webinar will be held on February 21,2024 (11:00 am to 2:00 pm) and again on May 23,2024 (1:00 pm to 4:00pm).
In Their Own Words: How Contributing LTC to Those Who Need It Affects Individual Finances
Edward A. Zurndorfer is a CERTIFIED FINANCIAL PLANNER™ professional, Chartered Life Underwriter, Chartered Financial Consultant, Chartered Federal Employee Benefits Consultant, Certified Employees Benefits Specialist and IRS Enrolled Agent in Silver Spring, MD. Tax planning, Federal employee benefits, retirement and insurance consulting services offered through EZ Accounting and Financial Services, and EZ Federal Benefits Seminars, located at 833 Bromley Street - Suite A, Silver Spring, MD 20902-3019 and telephone number 301-681-1652. Raymond James is not affiliated with and does not endorse the opinions or services of Edward A. Zurndorfer or EZ Accounting and Financial Services. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.