{"id":13082,"date":"2021-04-16T18:17:59","date_gmt":"2021-04-16T18:17:59","guid":{"rendered":"https:\/\/arrivity.com\/?p=13082"},"modified":"2023-06-13T06:38:07","modified_gmt":"2023-06-13T06:38:07","slug":"new-washington-long-term-care-trust-act","status":"publish","type":"post","link":"https:\/\/arrivity.com\/new-washington-long-term-care-trust-act\/","title":{"rendered":"New Washington Long Term Care Trust Act"},"content":{"rendered":"<p>Washington State recently passed the Long Term Care Trust Act. Starting January 1, 2022, all W-2 income in WA State will be taxed at 0.58% to fund this new program. <strong>Prompt attention may be required for those who are working and already have a private Long Term Care Insurance policy or those who are working and are interested in purchasing long term care insurance.<\/strong> Please read below for additional information.<\/p>\n<p>As of 4\/12\/2021, this is what we know:<\/p>\n<h1>Who will pay?<\/h1>\n<ul>\n<li>The LTC Trust will be funded by a 0.58% payroll tax on all W-2 income beginning 1\/1\/2022.<\/li>\n<li>There is no cap on wages used to calculate the tax.<\/li>\n<li>W-2 income includes company stock awards.<\/li>\n<li>Self-employed persons and independent contractors are excluded, but can \u201copt-in\u201d.<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<th><strong>Hypothetical W-2 Income<\/strong><\/th>\n<th><strong>0.58% Tax<\/strong><\/th>\n<\/tr>\n<tr>\n<td>$100,000<\/td>\n<td>$580<\/td>\n<\/tr>\n<tr>\n<td>$150,000<\/td>\n<td>$870<\/td>\n<\/tr>\n<tr>\n<td>$250,000<\/td>\n<td>$1,450<\/td>\n<\/tr>\n<tr>\n<td>$500,000<\/td>\n<td>$2,900<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h1>What are the benefits of the WA LTC Trust Plan?<\/h1>\n<ul>\n<li>Beginning 1\/1\/2025, eligible WA residents may receive up to $100 per day for long term care services. Maximum lifetime benefit is $36,500 (365 days).<\/li>\n<li>Current daily cost in Seattle \u2013 Home care (8hrs) ~$220, Assisted Living ~$224, Nursing Home ~$400.<\/li>\n<\/ul>\n<h1>Who will benefit from the Plan?<\/h1>\n<ul>\n<li>Only qualified Washington residents<sup>1<\/sup> who, at the time of the claim<sup>2<\/sup>, paid the tax for either a) 3 years within the last 6 years, or b) for a total of 10 years, with at least 5 years uninterrupted.<\/li>\n<\/ul>\n<h1>What can you do (e.g. how to opt-out of the tax)?<\/h1>\n<ul>\n<li>For those with an existing private long term care insurance policy:\n<ul>\n<li>Apply for an exemption from the payroll tax with the employment security department (\u201cESD\u201d) from October 1, 2021 \u2013 December 31, 2022.<\/li>\n<li>Provide the approval letter from ESD to your employer.<\/li>\n<\/ul>\n<\/li>\n<li>For those without an existing private long term care insurance policy:\n<ul>\n<li>Purchase a qualified long term care policy by November 1, 2021.<\/li>\n<li>Apply for an exemption from the payroll tax with the employment security department (\u201cESD\u201d) from October 1, 2021 \u2013 December 31, 2022.<\/li>\n<li>Provide the approval letter from ESD to your employer.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h1>Sample premiums for a private policy<\/h1>\n<p>Coverage includes $3,000 per month, 2 year benefit period, 3% compound inflation rider:<\/p>\n<table>\n<tbody>\n<tr>\n<th><strong>Private Policy Premiums<\/strong><\/th>\n<th><strong>Age 30<\/strong><\/th>\n<th><strong>Age 40<\/strong><\/th>\n<th><strong>Age 50<\/strong><\/th>\n<\/tr>\n<tr>\n<td>Male<\/td>\n<td>$845<\/td>\n<td>$881<\/td>\n<td>$1,045<\/td>\n<\/tr>\n<tr>\n<td>Female<\/td>\n<td>$1,254<\/td>\n<td>$1,292<\/td>\n<td>$1,597<\/td>\n<\/tr>\n<tr>\n<td>Married Couple<\/td>\n<td colspan=\"3\">Discounts may be available<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>If you are interested in exploring your options for a qualified long term care policy, or a hybrid long term care \/ life insurance policy, please start by contacting an insurance professional (see <a href=\"https:\/\/arrivity.com\/client-forms\/\">our Recommended Resources<\/a>) to determine your eligibility, and to obtain a quote. If you still have questions on whether a private policy is right for you, <a href=\"https:\/\/arrivity.com\/contact\/\">contact<\/a> Arrivity Financial Planning to set up a consultation.<\/p>\n<p><small><sup>1<\/sup> Must reside in the State of Washington. Any person that moves out of the State of Washington for 5+ years will forfeit all benefits and taxes paid.<br \/>\n<sup>2<\/sup> A qualifying claim requires that an individual needs assistance with a minimum of 3 of 10 Activities of Daily Living (\u201cADLs\u201d): medication management, personal hygiene, eating, toileting, transferring, body care, bathing, ambulation\/mobility, dressing, and cognitive impairment.<\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Washington State recently passed the Long Term Care Trust Act. Starting January 1, 2022, all W-2 income in WA State will be taxed at 0.58% to fund this new program. Prompt attention may be required for those who are working and already have a private Long Term Care Insurance policy or those who are working [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":13855,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/posts\/13082"}],"collection":[{"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/comments?post=13082"}],"version-history":[{"count":8,"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/posts\/13082\/revisions"}],"predecessor-version":[{"id":13099,"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/posts\/13082\/revisions\/13099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/media\/13855"}],"wp:attachment":[{"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/media?parent=13082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/categories?post=13082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arrivity.com\/wp-json\/wp\/v2\/tags?post=13082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}