Did you know your IRA or 401(k) could fund your future care? This strategy is surprisingly simple.
Many retirees assume their IRA can only be used for retirement income.
But there’s a smarter play: you can convert all or a portion of your IRA or 401(k) into a special long-term care plan.
Here’s how it works:
- You reposition part of your IRA into a qualified annuity as a direct transfer
- Annuity funds ten annual premium payments into a LTC plan
- Taxes are spread out over ten years
- LTC benefits are tax free
- You pay no further premiums — and no tax on withdrawals used for qualifying care
- If unused, the death benefit returns your money to your estate.
It’s ideal for Washington residents looking to cover future care needs without sacrificing their retirement income or tax savings.