|Long Term Care
The need for long term care
insurance is growing as baby boomers continue to age. Fortunately, the
federal tax code was changed to encourage individuals to purchase LTC
coverage and for employers to offer LTC coverage to their employees.
The business can deduct the full premium paid for
long term care coverage on behalf of its employees and their spouses and
dependents. This includes shareholder-employees of C corporations.
Owners of LLCs, sole proprietorships,
partnerships and two percent shareholders of S corporations also enjoy
significant tax benefits on company-paid premiums for their own
Business owners can designate or "carve out"
specific classes of employees that will be covered with long term care
In many cases, electing a 10-pay or Paid-up by
65 premium payment option allows premiums to be fully paid by
Return to the general
discussion of Employee Benefits.