About Us

About Us

RetirementGuard & Long-Term Care Insurance

RetirementGuard is independently owned and we are singularly focused on helping people keep their money safe. Our main office is located in Lakeville, CT.

Our mission is to enhance quality of life and peace of mind through the use of tax qualified traditional and asset based long-term care insurance strategies. We believe our client’s interest always comes first. If we are diligent in serving our clients’ needs- our success will follow. We work with employer groups and individuals, and our employer client list includes many of the most prestigious colleges, universities, and medical schools in the United States.

Sandy Dennis is a co-founder of RetirementGuard. Sandy is responsible for all facets of operations, and for ensuring outstanding client service satisfaction.

Craig Davis is also a co-founder. Craig has over 20 years experience in the long-term care insurance industry, primarily in the employee benefit realm.

We offer clients a level of specialization, service, and expertise that they will have difficulty finding anywhere else. To learn more about us, visit our other websites:

www.retirementguard.com
www.hybrid-ltc.com

Tax Facts for Individuals

Premiums paid by an individual for qualified long term care insurance are treated as a medical expense for purposes of itemizing medical expenses.

The amount that can be used in calculating the expense deduction is limited to the lesser of actual premium paid, or "eligible long term care premium." defined as follows:

Attained Age before
Close of Taxable Year

Allowable Deduction
for tax year 2013 (new)

40 or Younger $360
41 through 50 $680
51 through 60 $1,360
61 through 70 $3,640
71 and older $4,550

The amount of premium paid for the coverage of the individual, spouse and dependents may be deducted to the extent that the total medical expenses, including the eligible long term care premium, exceeds 7.5% of adjusted gross income (AGI). Benefits paid on a qualified long term care insurance policy to an individual are generally not taxable.

Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.

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Tax Facts for the Sole Proprietor

Sole proprietors can deduct the full premium paid for LTC coverage they provide their employees. With respect to their own coverage, the sole proprietor can deduct 100% of the eligible long term care premium, which is age based. Long-term care insurance qualifies as accident and health insurance. "Eligible long term care premium" is defined as follows:

The amount that can be used in calculating the expense deduction is limited to the lesser of actual premium paid, or "eligible long term care premium." defined as follows:

Attained Age before
Close of Taxable Year

Allowable Deduction
for tax year 2013 (new)

40 or Younger $360
41 through 50 $680
51 through 60 $1,360
61 through 70 $3,640
71 and older $4,550

There is no 7.5% of AGI threshold requirement.

A sole proprietor can deduct the full premium paid for LTC coverage by hiring his/her spouse as an employee and providing family coverage for the employee/spouse. The employer/spouse is then covered by the plan as a member of the employee's family. If the employee/spouse is a bona fide employee, the cost of the coverage is fully deductible by the employer/spouse and excludable from the employee/spouse's gross income.

Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.

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Tax Facts for Partnerships

When a partnership pays for LTC coverage on its partners, it can deduct premiums that qualify as "guaranteed" payments under IRC Section 707(c). LTC premiums constitute guaranteed payments if they are paid for services rendered by the insureds in their capacity as partners, without regard to partnership income. Since partners are not employees, they cannot use IRC Section 106(a) to exclude from their gross income the LTC premiums paid by the partnership. Although partners must include the full amount of such premiums in their gross income, they can deduct a portion of the premiums paid. The "eligible" long-term care insurance premiums which are paid.

The amount that can be used in calculating the expense deduction is limited to the lesser of actual premium paid, or "eligible long term care premium." defined as follows:

Attained Age before
Close of Taxable Year

Allowable Deduction
for tax year 2013 (new)

40 or Younger $360
41 through 50 $680
51 through 60 $1,360
61 through 70 $3,640
71 and older $4,550

The same rules that limit the deduction a sole proprietor can take for his or her long term care premiums also limit the premiums that a partner can deduct. Members in a limited liability company (LLC) taxed as a partnership, are subject to these same limitations.

If a spouse is a bona fide employee of a partnership or LLC, the same rules regarding deductibility and exclusion from gross income that are described in the section on Sole Proprietor apply.

Partnerships may generally deduct all premiums paid for employees, their spouses and dependents, retirees', and retirees' spouses.

Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.

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Tax Facts for C Corporations

C-Corporations may generally deduct the entire premium paid for policies for employees, their spouses and dependents, retirees', and retirees' spouses, as a reasonable business expense. Long-term care insurance qualifies as an accident and health plan within the meaning of IRC Sections 105(b) and 106. The employer paid premiums are not considered as taxable income to those insureds.

Importantly, there is no requirement that coverage be provided on a non-discriminatory basis to all employees. The C-Corporation may, therefore, purchase a policy for certain key employees on a tax-deductible basis, and the key employee will not have to report this benefit as taxable income.

Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.

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Tax Facts for S Corporations

For fringe benefit purposes, a 2-percent shareholder of an S corporation is treated like a partner in a partnership. Therefore, an S corporation can deduct the premiums it pays in consideration for services rendered by the insured shareholder, and the shareholder must include the full premium in his or her gross income. However, shareholders can deduct "eligible" premium.

The amount that can be used in calculating the expense deduction is limited to the lesser of actual premium paid, or "eligible long term care premium." defined as follows:

 

Attained Age before
Close of Taxable Year

  

Allowable Deduction
for tax year 2009

 (for 2008)
40 or Younger   $320 $310
41 through 50   $600 $580
51 through 60   $1,190 $1,150
61 through 70   $3,180 $3,080
71 and older   $3,980 $3,850

A 2-percent shareholder is defined in IRC Section 1372 as "...any person who owns (or is considered as owning within the meaning of Section 318) on any day during the taxable year of the S corporation more than 2 percent of the outstanding stock of such corporation or stock possessing more than 2 percent of the total combined voting power of all stock of such corporation." IRC Section 318 provides rules for the constructive ownership of stock (the attribution rules). Under these rules, an individual is deemed (i.e., considered) to own stock owned directly or indirectly by his parents, spouse, children and grandchildren.

The S Corporation can generally deduct all premiums paid for policies covering non shareholder employees, their spouses and dependents, retirees', and retirees' spouses.

Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.

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Tax Facts for Employers and Employees

Employer Deduction - LTC Premiums

When an employer pays the premium for qualified long term care coverage for its employees, the employer should be able to deduct those premiums as an ordinary and necessary business expense to the same extent that it can deduct premiums paid for other accident and health insurance covering its employees (IRC Sec. 162). However, an employer cannot provide long term care coverage as part of a cafeteria plan (IRC Sec. 125(f)). An employer can discriminate by making contributions to a specific class (es) of employees.

Employee Income - LTC Premiums

Under IRC Section 106(a), an employee does not have to include in gross income the cost of any employer-provided coverage under an accident or health plan. Consequently, with one exception, premiums paid by an employer for an employee's qualified long term care insurance are not includible in the employee's gross income. No distinction is made to the amount of premium which is not included in gross income. However, if an employer provides long term care coverage through a flexible spending arrangement, the employee must include the cost of that coverage in gross income (IRC Sec. 106(c)). Accordingly, the employee's medical expense deduction is then limited to the lesser of actual premium paid or the eligible long term care premium, and the normal threshold of 7.5% of AGI applies.

Employee Income - LTC Benefits

Amounts received under a qualified long term care insurance contract are treated as reimbursements for expenses actually incurred for medical care (IRC Sec. 7702B(a)(2)). As a result, if an employer pays the premium for an employee's qualified long term care coverage, the employee will NOT be taxed on the long term care-benefits paid under the insurance -- those benefits are treated as a non-taxable reimbursement for medical care. The result is the same whether the insurance reimburses actual long term care expenses or pays a per diem amount toward long term care. However, if the insurance pays a per diem benefit that exceeds the per diem limit provided under IRC Section 7702B(d) ($260 in 2007), the excess is taxable income to the employee unless the employee's actual long term care expenses equal or exceed the per diem benefit paid.

Shareholder Employees

LTC premiums paid by a C corporation on behalf of any shareholder are treated as non-deductible dividends, unless the corporation can establish that it is providing coverage to the insured in his or her capacity as an employee. If a corporation cannot deduct LTC premiums -- because the premiums are treated as a dividend to a shareholder -- the insured must include the entire premium in gross income. Again, IRC Section 106(a) only allows employees to exclude from gross income the cost of employer-provided LTC coverage.

Note: Before making tax decisions about long-term care insurance it is essential that you consult with your attorney, accountant, or other tax professional, for advice regarding your own personal situation.

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State Specific Tax Facts

If your state offers a full, 100% deduction for long-term care insurance premiums, and your state income tax rate is, for example, 7% then your taxes would be reduced by $280 if you paid long-term care insurance premiums of $4,000. If your state offers a tax credit of $100- then the state will "pay" the first $100 of your premium.

State Tax
Incentive		 Description
Tax Treatment

Alabama

Deduction

Permits a deduction for the premium paid for qualified long term care coverage under a policy that meets the requirements of Alabama Code Section 27-47-2.
Arkansas Deduction Adopts section 213 of Internal Revenue Code for computing medical and dental expense deduction under state income tax law

California

Deduction

Permits the same tax deduction as is allowed for federal income tax purposes

Colorado

Credit

State income tax credit equal to the lesser of 25% of premiums paid for a long term care insurance policy or $150 per policy.  Individuals who qualify for the credit are those with federal taxable income less than $50,000 ($100,000 for joint filers claiming a credit for 2 policies.)  A long term care policy must meet Colorado’s definition of long term care.
District of Columbia Deduction Effective 1/21/05, permits a deduction from gross income the amount an individual pays annually in long-term care premiums, provided that the deduction shall not exceed $500.00 per year, per individual, whether the individual files individually or jointly.

Hawaii

Deduction

 For tax years beginning on or after January 1, 1999, an individual state tax deduction is allowed for long term care insurance premiums.  This deduction is limited in the same manner as the deduction on the federal level, and is also only available to the extent that all medical expenses, including long term care premium, exceed 7.5% of Hawaii Adjusted Gross Income.

Idaho

Deduction

For tax years beginning on or after January 1, 2004, allows an individual taxpayer to deduct the full amount of premiums paid for long term care insurance for the taxpayer, a dependent or an employee. The deduction may be taken for a federally tax-qualified long term care insurance policy meeting Idaho’s definition of long term care insurance.

Indiana

Deduction

For tax years beginning on or after January 1, 2000, an individual taxpayer is permitted to deduct an amount equal to the eligible portion of premiums paid during the taxable year by the taxpayer for a qualified long term care policy (as defined in the Indiana Code), for the taxpayer, the taxpayer’s spouse, or both. For Qualified Partnership Policies Only.

Iowa

Deduction

Adopt section 213 of Internal Revenue Code for computing medical and dental expense under state income tax law.
Kansas Deduction For the tax years beginning after 12/31/04 allows for the deduction for state income tax purposes from federal adjusted gross income, in an amount not to exceed $500 of the premium costs for LTC insurance. The deduction amount increases $100 for each year thereafter until the amount the amount reached is $1,000.

Kentucky

Exclusion

For tax years beginning on or after January 1, 1999, a taxpayer may exclude from Kentucky Adjusted Gross Income any amounts paid for long term care insurance as defined in the Kentucky code.

Maine

Deduction

 For tax years beginning on or after January 1, 2004 a taxpayer may take a state income tax deduction an amount equal to the total premiums spent for LTC insurance, as long as the amount subtracted is reduced by any amount claimed as a deduction for federal income tax purposes.

 

Credit

Tax credit for employers providing long term care benefits to employees under a federally tax-qualified policy equal to the lowest of $5000; 20% of costs; or $100 for each covered employee.

Maryland

Credit

 For tax years beginning on or after January 1, 1999, an employer may claim a tax credit for a portion of the costs incurred by the employer during the taxable year to provide long term care insurance as part of an employee benefit package.  The credit is equal to the lesser of: 1) 5% of the employers cost in providing a Long Term Care Benefit, 2) $5000, or 3) $100 for each employee in the state covered by Long Term Care Insurance under the Employer’s plan.

  Credit For tax year beginning on or after January 1, 2000, an individual may claim a credit equal to 100% of “eligible long term care premiums” paid during the taxable year for long term care insurance covering the individual or the individual’s spouse, parent, stepparent, child or stepchild.  Credit may not exceed $500 for each insured, and may not be claimed with respect to an insured if the insured individual was covered by long term care insurance at any time before July 1, 2000, or the credit has been claimed with respect to that insured individual by any taxpayer for any prior taxable year.

Minnesota

Credit

For tax years beginning on or after January 1, 1999, a taxpayer is allowed a tax credit for premiums paid during the tax year for long term care insurance.  The Credit for each policy is equal to the lesser of 25% of premiums paid or the extent not deducted in determining federal taxable income OR $100.  Maximum allowable credit per year is $200 for couples filing jointly and $100 for all other filers.

Missouri

Deduction

For tax years beginning on or after January 1, 2000, an individual may take a state tax deduction equal to 50% of unreimbursed payments for qualified long term care insurance premiums (as defined by Missouri LTC statutes) which are not included in an individual’s itemized deductions.

Montana

Deduction

A deduction is generally allowed for the entire amount of qualified long term care premiums paid by the taxpayer.
  Credit A limited credit is available for expense of caring for certain elderly family members (which includes premiums paid for long term care insurance coverage).  The amount of credit is determined based on the taxpayer’s adjusted gross income and cannot exceed $5,000 per qualifying family members in a taxable year ($10,000 for two or more family members).
New Jersey Deduction Allows a deduction for medical expenses (including long term care insurance premiums), to the extent such expenses exceed 2% of taxpayer’s gross income.
New Mexico Deduction Permits a deduction for the premium paid for a qualified long term care insurance contract as defined in Internal Revenue Code section 7702(B), as part of unreimbursed or uncompensated medical care expenses.  Total medical expense deduction is limited, based on income level.

New York

Credit- Amended 8/20/04

Allows a tax credit equal to 20% of the premium paid during the taxable year for long term care insurance (provided the sitused policy has been approved by the Superintendent of Insurance), provided policy qualifies for such credit pursuant to Section 1117. If the amount of credit allowable under this subsection for any taxable year shall exceed the taxpayer’s tax for such year, the excess may be carried over to the following year or years and may be deducted from the taxpayer’s tax for such year or years.

North Dakota

Credit

Credit against an individual’s tax liability provided to each taxpayer in the amount of 25% of any premiums paid by the taxpayer for long term care insurance coverage for the taxpayer, a taxpayer’s spouse, parent, stepparent, or child.  The credit cannot exceed $100 for each insured individual in any taxable year.

Ohio

Deduction

Generally allows a deduction for the amount paid for qualified long term care insurance for the taxpayer, his spouse, and dependents.
Oklahoma Deduction Permits the same tax deduction as is allowed for federal income tax purposes.

Oregon

Credit

Permits an income tax credit equal to the lesser of 15% of long term care insurance premiums paid by a taxpayer or $500 if the long term care insurance is covering the individual and dependents or parents.  In order for the credit to be available the policy must be issued after January 1, 2000.  The credit is not refundable and cannot be carried forward.

Utah

Deduction

Permits a deduction for all resident or nonresident taxpayers for all premiums paid for long term care insurance as defined under the Utah Code.

Virginia

Deduction

The amount paid in long term care premiums may be deducted from federal adjusted gross income in computing VA taxable income.

West Virginia

Deduction

A deduction is allowed for resident taxpayers for amounts paid during the taxable year for premiums for long term care insurance as defined in the West Virginia Code, for taxpayer, taxpayer’s spouse, parent, or dependent, from the federal adjusted gross income reported on the WVA state tax return.

Wisconsin

Deduction

Allows a deduction for up to 100 percent of the cost of a long term care insurance policy.

This information is not a substitute for expert tax advice. Please contact a tax professional for complete details
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Privacy Policy

RetirementGuard's mission is to enhance quality of life and peace of mind. We believe the interest of our clients always come first. As a current or future client we need you to know that we are committed to maintaining your trust; protecting your privacy and the personal information you provide to us.

We only collect, use and share your personal information in order to provide you with and maintain the insurance products and services you have requested, or as permitted or required by law.

We will not share your information with any non-affiliated company for the purpose of that company marketing its products or services to you. We do not sell any information about you nor do we sell our customer lists.

Information collection

An essential part of the insurance application process is getting to know you. In this regard, we will need to collect some specific information from you and about you.

We will ask you to provide, among other things, personal data such as your name, address, date of birth, social security number, marital status, home address, phone numbers, email address and place of employment. In most cases you will also need to provide the names of your physicians, medications you are taking and illnesses or conditions you have or have had. Lastly, to ensure that you can afford the insurance you are interested in purchasing, questions related to your annual income range, savings and investments.

We would require the above information for the following:

Sharing information

When you provide information to us, we may share your information with our affiliated insurance companies for the purpose of fulfilling underwriting requests as well as offering you other services that may be of interest to you.

How is your information secured and protected?

We treat what we know about you confidentially. The website uses encryption and authentication tools to protect any personal information you send us via the Internet. Internally we take steps to make our computer data bases secure and to safeguard the information we have collected about you.

We require confidential treatment of your information and take care in handling your information. Employees who misuse customer information are subject to disciplinary action.

To contact us, to view or to update your information

If you wish to update or view your personal information or if you have any questions about this Privacy Policy, you may contact us by sending a letter via the U.S. Mail to:

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