Nebraska’s Long-Term Care Saving Plan (LTCSP) is an innovative tax-exempt savings option to help people pay for their future long-term care expenses. When the law was passed in 2006 with AARP’s support, Nebraska became the first state in the nation to offer tax incentives to save and pay for long-term care. Since its creation, over 400 Nebraskans have opened LTCSP accounts.
See Also: Long-Term Care Quiz. Are You Ready For Your Future?
Any Nebraska resident can begin a tax-free savings or investment account by signing up at a participating financial institution. The LTCSP allows deposits up to $190,350 per person for the life of the account, adjusted for inflation. Participants also qualify for an annual tax deduction up to $1,000 for an individual or $2,000 for joint returns.
“These savings accounts are a beneficial tool to help Nebraskans take control and finance at least a portion of their long-term care needs,” said Connie Benjamin, state director of AARP Nebraska. “AARP surveys consistently show that the vast majority of Nebraskans age 50+ want to stay in their homes and communities as they age. The LTCSP gives people that needed flexibility to pay for services and supports in their own homes.”
According to the Nebraska State Treasurer’s Office, funds deposited in the savings accounts will accrue interest tax-free until withdrawn at any age, as long as they are used for long-term care needs or transferred to a beneficiary after death. The money can be used to pay long-term care needs for spouses or others in which the account holder has an insurable interest. After the age of 50, the funds also can be withdrawn tax-free to pay for long-term care insurance premiums.
“One important step Nebraskans can take now is to prepare for their future living needs through solid financial planning. The Nebraska Long-Term Care Savings Plan was created with that purpose in mind. It is one of many options available to encourage Nebraskans to begin saving for the services and care they may need later in their lives,” State Treasurer Don Stenberg said.
Several types of long-term care expenses can be paid for from an LTCSP account including: licensed nursing or assisted living facility, in-home assistance, basic therapeutic care, health maintenance activities, home health services, qualified home modifications, assistive technology, adult day care, rehabilitation treatments, and respite and hospice care.
Find more information about the LTCSP or find a participating financial institution and select Long-Term Care Savings.