How Law Firm Partners Can Use Their Profit Sharing Plans to Buy Qualified Long Term Care Insurance

DANBURY, Conn.--(BUSINESS WIRE)--Corporate Compensation Plans, Inc. (CCP) has designed a long term care insurance plan for law firm partners who are over age 59 that can be paid with distributions from their profit sharing and IRA plan accounts without net tax liability to the partner as they are sheltered with corresponding deductions and credits.

“can be the same as if long term care insurance premiums were paid from a partner’s profit sharing or IRA plans on a pre-tax basis. However, the insurance benefits payable from the plan are generally income tax-free.”

“The after-tax result of the transaction,” said Philip Davis, CCP’s President, “can be the same as if long term care insurance premiums were paid from a partner’s profit sharing or IRA plans on a pre-tax basis. However, the insurance benefits payable from the plan are generally income tax-free.”

CCP’s plan will be particularly attractive to senior partners because at age 70½ they are forced to take taxable distributions from their profit sharing and IRA plans even if it is not needed to provide retirement income. The CCP plan anticipates this distribution requirement on a tax-favored and economically attractive basis.

“The costs of extended health care – from serious injuries and strokes, or diseases such as Parkinson’s, MS, diabetes, and Alzheimer’s – can run into the millions of dollars,” said Tasha Mayberry, CCP’s Vice President of Marketing. She continued, “Our new Plan will enable law firm partners to protect their family’s assets from these potentially devastating costs with little, if any, net out-of-pocket premium expense.”

CCP has created a dynamic software program that projects cash flows, anticipated tax savings and insurance payments as well as an optional feature that refunds premiums if benefits are never paid from the policy. In addition, CCP will provide supporting information about the IRS regulations and citations that make the program possible.

To learn how CCP’s new Plan can work for your law firm, call Tasha Mayberry at 203.792.7300 or email her at [e-mail].

Corporate Compensation Plans has been providing tax-effective benefit programs for many of the largest companies and law firms in the country for over 4 decades. It is located at 457 Main Street in Danbury, CT 06811 and the website location is www.corpcompinc.com.

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