| Provided by The Retirement Group: Your Partners | | | | value of idle cash sitting on the sidelines. The new |
| In Retirement | | | | allowance of what could be sizable tax-free |
| This does not constitute an endorsement by John | | | | withdrawals makes them look even better. |
| Jastremski, The Retirement Group or the author | | | | In addition, the new freedom to make a tax-free |
| of the book. The opinions expressed are solely | | | | exchange means that an annuity owner can now |
| those of the author and may or may not be a | | | | leave a current contract for a hybrid annuity that |
| representative opinion of The Retirement Group | | | | may provide a much greater pool of money |
| or John Jastremski. | | | | someday to cover LTC costs. |
| More options. On January 1, 2010, owners of | | | | Are they for you? These hybrid annuities are |
| nonqualified annuities were allowed some new tax | | | | certainly worth a look.If you can't qualify medically |
| benefits. On that date, the Pension Protection Act | | | | for LTC insurance but still need to be protected, a |
| (PPA) of 2006 was fully implemented and brought | | | | hybrid annuity may be an excellent option. Many |
| about dramatic and interesting changes for those | | | | people fund these annuities by redirecting cash |
| who had started annuities with after-tax dollars. | | | | from a bank CD or an annuity they already own. |
| At the start of 2010: | | | | You might want to talk to your insurance or |
| - Non-qualified deferred annuities with added long | | | | financial consultant about the possibility. |
| term care insurance riders were now | | | | John Jastremski, Jeremy Keating, Erik J Larsen, |
| characterized as tax-qualified LTC insurance plans.1 | | | | Frank Esposito, Patrick Ray, Robert Welsch, |
| - As a result, all withdrawals from these "hybrid | | | | Michael Reese Philip Catalan, Brent Wolf, Andy |
| annuities" are income tax free so long as they are | | | | Starostecki, The Retirement Group, AT&T, |
| used for qualified long term care. So you can use | | | | Verizon |
| the cash value of the annuity to cover the cost | | | | These are the views of Peter Montoya Inc., not |
| of LTC insurance premiums without triggering a | | | | the named Representative nor Broker/Dealer, and |
| taxable event.1 | | | | should not be construed as investment advice. |
| - Annuity owners were now allowed to make | | | | Neither the named Representative nor Broker |
| tax-free 1035 exchanges into appropriate hybrid | | | | Dealer gives tax or legal advice. All information is |
| annuities with long term care riders.2 | | | | believed to be from reliable sources; however, we |
| - Additionally, an annuity owner can do a 1035 | | | | make no representation as to its completeness or |
| exchange for the cash value from any annuity | | | | accuracy. The publisher is not engaged in |
| into a single-premium qualified LTC insurance policy | | | | rendering legal, accounting or other professional |
| without incurring any gains.2 | | | | services. If other expert assistance is needed, the |
| Now these annuities are even more attractive. | | | | reader is advised to engage the services of a |
| Hybrid annuities with LTC insurance riders already | | | | competent professional. Please consult your |
| offer their owners tax-deferred growth - and | | | | Financial Advisor for further information. |
| sometimes, a return-of-premium option that gives | | | | Citations. |
| back the investment to an owner's estate if no | | | | 1 thecompletelawyer.com/financial-matters |
| LTC claim is made. These linked-benefit annuities | | | | retirement-planning-financial-matters |
| (and linked-benefit life insurance policies) can | | | | re-4333.html?nomobile [4/20/09] |
| provide something like a "money-back guarantee", | | | | 2 financial-planning.com/bic_issues/2009_11 |
| as well as the capability to multiply the benefit | | | | the-new-wave-in-ltc-hybrids-2664417-1.html? |