Washington LTC
Payroll Tax Opt-Out
TAX OPT-OUT DEADLINE IS DECEMBER 31, 2021
WA Taxpayers Saved So Far!
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A service division of Leverage Planners Wealth Management
Option 1
Green Line Asset-Based LTC
- Ages 21+, Individual Policies only
- Minimum $50,000 deposit (spread over 5+ years is OK)
- As low as $5,000 year 1
- Income Tax-Free Roth-Alternative retirement Life/LTC policy
- (Reference: IRC 7702)
- Qualifying terms for WA payroll tax exemption
- LTC Benefit starts at $250,000 minimum
- Unused LTC Benefits become Tax-Free Life Insurance Benefits
- 15+ year duration product design
- No IRS income phase-out restrictions, available to all income levels (unlike Roth IRA/401k)
- No IRS contribution restrictions, suitable to higher earners (unlike Roth IRA/401k)
- 50-90% mid-term tax free liquidity (with re-contribution privileges) available (unlike Roth IRA/401k)
- Cash account can grow annually base on market-index linked interest
- Contributions and annual gains are protected from subsequent market losses
- Contribution pay-ins are flexible, allowing variation to fit cashflows
- Contribution plans can be decreased any time without underwriting
- Contribution plans can be increased with additional health underwriting
BEST GROWTH DESIGN APPROACH;
Determine maximum capital contributions over future 10-15 years desired to compound tax-free
Apply for a policy designed for the MINIMUM required LTC/Life benefits that retain IRC 7702 tax-free provisions
With flexibility permitted, add capital to fit max funding design as fast as cashflows allow
STRATEGY NEGATIVES:
Longer term commitment
Requires more complete health exam and underwriting
Requires initial multi-year contribution planning (actual contribution amounts can be flexible)
Premature policy cancellation subject to substantial penalties
Annual market-linked upside growth is typically limited, and rarely supersedes 20% annual interest in any single year
Initial dollar contributions incur 1st year expense burdens of 6-8%, with declining expenses annually.
Gross total annual average fees typically drop to or below 1% by 15th-20th year (thereby roughly equaling traditional portfolio management fees, without traditional portfolio loss risks.)
*Guarantees backed by the claims paying strengths of the offering insurance companies.
Option 2
Blue Line Asset-Based LTC
A. Individual:
Ages 1 year+ = $50,000 minimum Non-Qualified deposit
Ages 59.5+ = $50,000 minimum IRA/Roth-IRA deposit
B. Joint:
Ages 50+ = $50,000 minimum Non-Qualified deposit
Tax-free LTC Benefit is typically 2-3+ times cash deposits (depending on health underwriting)
Zero Fees for these policies
2% interest currently paid on cash deposits
100% cancellable and refundable, at 9% cancellation fee, if cancelled in full PRIOR to 10th year,
*or*
100% cancellable and refundable, 100% penalty-free, if cancelled AFTER the 10th year,
*or*
10% (1/10th of balance) cancellable and refundable, 100% penalty-free, EVERY anniversary
Media
Jun 14, 2021
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May 22nd, 2020
