Skip to main content
No. of Recommendations: 4
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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.