RMDs aren't a tax-free way to pay for long-term care insurance

January 10, 2016 8:06 PM

23 0

Q: People have told me that I can use my required minimum distribution (RMD) to pay for long-term care insurance and not have to pay any income tax on the RMD. Is this true? — Barbara Sweet, Hyde Park, N.Y.

A: Your sources, unfortunately, are incorrect. “At best the payment of a long-term care premium — no matter the source of the payment — would be considered part of a taxpayer's medical expense itemized deduction,” says John Kilroy, a certified public accountant who maintains a sole proprietorship ta...

Read more

To category page