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Washington LTC

Payroll Tax Opt-Out

How to Register for Exemption with Washington State AFTER your LTC policy is issued.
Green Line Single LTC / Tax-Free Growth
Blue Line Single, age 1-49
Blue Line Age 50+ Single/Joint
Blue Line Age 59.5+ IRA/Roth/401k

TAX OPT-OUT DEADLINE IS DECEMBER 31, 2021

WA Taxpayers Saved So Far!

TOTAL ENGAGEMENTS

2113

IN PROGRESS

1309

COMPLETED

803
A service division of Leverage Planners Wealth Management
How to Register for Exemption with Washington State AFTER your LTC policy is issued.
Green Line Single LTC / Tax-Free Growth
Blue Line Single, age 1-49
Blue Line Age 50+ Single/Joint
Blue Line Age 59.5+ IRA/Roth/401k
Media
Resources
Daily Q&A

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

Know your options for private long-term care insurance – New Day NW
Who should opt out of Washington’s new long-term care insurance program? – New Day NW
Jun 14, 2021
Why to consider opting out of Washington state’s Long-Term Care Trust Act – New Day NW
Apr 30, 2021
WA-LTC Opt-Out FAQ
May 7th, 2021
Asset Based Long-Term Care
May 22nd, 2020

Daily Live Advisor Public Q&A Sessions

Important Washington state definitions and information links;

Washington Cares Fund (state consumer-facing website)
(Original: LONG-TERM CARE INSURANCE ACT)
LONG-TERM CARE INSURANCE COVERAGE—STANDARDS
How and when can an employee apply for an exemption from the long-term services and supports trust program?
What happens after an employee’s exemption application is processed?
WA State “Concise Explanatory Statement
WA Cares Act Flyer (State Explanation)
SUBSTITUTE HOUSE BILL 1323 (session 2021)
LONG-TERM SERVICES AND SUPPORTS TRUST PROGRAM
Eligibility requirements for an employee to receive an exemption from the long-term services and supports trust program.
Definition of what WA state considers acceptable long term care insurance, and not;
Is an exempt employee entitled to a refund of premiums?
What qualifies as long-term care insurance?
How to Register for Exemption with Washington State AFTER your LTC policy is issued.
Green Line Single LTC / Tax-Free Growth
Blue Line Single, age 1-49
Blue Line Age 50+ Single/Joint
Blue Line Age 59.5+ IRA/Roth/401k

We are an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom suit their needs and objectives.

Advisory services offered through Leverage Planners Wealth Management, LLC (LPWM,) and insurance products offered through Leverage Planners (a DBA of No Bull Financial, LLC), an affiliated firm.

Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this website shall constitute an offer to sell or solicit any offer to buy a security or any insurance product.

*Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.

The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

CONTACT US

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Fax: (206) 666-3078

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Bellevue, WA 98005


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