[Health Insurance] 67, Tax Treatment of LTC Insurance and HSA Distributions

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Premiums for tax-qualified LTC insurance can be partially deducted based on the policyholder's age. - Benefits from a tax-qualified LTC policy are received income-tax-free, but only up to a federally set per diem limit. - HSA distributions used for qualified medical expenses are always free from both income tax and penalties. - Using HSA funds for non-qualified expenses before age 65 results in the withdrawal being subject to both income tax and a 20% penalty. - For individuals age 65 and older, the 20% penalty on non-qualified HSA distributions is waived, though the amount is still subject to ordinary income tax. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep