Long-Term Care Annuities to Go Tax Free

Think shelling-out for your own home-health services, an assisted-living facility or nursing-home care may be in your future? Good news: Come New Year’s Day, these services can be yours tax-free.

Thanks to the Pension Protection Act of 2006, starting Jan. 1, 2010, you’ll no longer have to pay federal income tax on an annuity’s proceeds — if you use those proceeds to pay for long-term-care coverage. That means that the chronically ill or disabled will no longer have to rely solely on a regular long-term-care insurance policy or Medicaid to fund their medical and non-medical care...

SmartMoney: Long-Term Care Annuities to Go Tax Free