The Motley Fool Discussion Boards	Previous Page
Investing/Strategies / Retirement Investing
URL: https://boards.fool.com/but-perhaps-i-should-leave-some-tira-money-34989761.aspx
Subject: Re: Roth Conversion Alternative	Date: 11/29/2021 7:33 PM
Author: Wradical	Number: 105381 of 107478
But perhaps, I should leave some TIRA money behind for funding long term care costs which I will most likely need at some point. Are there any special criteria that must be met in order to use TIRA dollars tax free for this purpose? I suppose there are. --------------------------- Well, as described, it's not completely "tax-free", to the extent that: * You have to pick it up in gross income, so it's in your AGI for all purposes, including any applicable phaseouts. * The offsetting LTC payments are a medical expense, subject to the 10% floor. * If it makes your AGI high enough, you could be subject to the additional 3.8% Medicare tax on investment income And all of the above were true in the case of my father, who had a lot of money (and a very good LTC insurance policy that you can't buy today) and who spent his last 9 years in a nursing home after suffering a stroke. He required additional personal nursing care, over and above that provided by the nursing home, which came to about $210,000 his last year. My sisters all thought it was worth it. I had the health care and financial POA, and had the final vote, but they lived closer to him than I did. So I always deferred to their judgment. Bill
Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us