The Nebraska Long-Term Care Savings Plan (LTCSP) is the first of its kind throughout the entire nation. Created by LB 965 in 2006, the plan offers a tax deduction for Nebraska residents who open a LTCSP or investment accounts at participating financial institutions.
Participants may deduct up to $1,000 ($2,000 filing jointly) from their federal adjusted gross income for Nebraska state income tax purposes by depositing an equal amount into a designated LTCSP account. In order to qualify for a Nebraska income tax deduction, an individual must make a deposit to a participating Financial Institution by the end of the calendar year.
Account deposits accrue interest tax-free until withdrawn at any age, as long as they are used for long-term care needs or transferred to a beneficiary after death. The money can be used to pay long-term care needs for spouses or others in which the account holder has an insurable interest. After the age of 50, the monies also can be withdrawn tax-free to pay for long-term care insurance.
We encourage you to speak with a bank manager from one of the participating financial institutions about how you can open up a LTCSP today and make the first step towards taking control of your future long-term care needs today.
To locate a participating financial institution near you, please visit Participating Nebraska Financial Institutions.
Planning Ahead for Future Long-Term Care Needs
Governor Heineman and the Nebraska Health and Human Services System
encourage Nebraskans to begin now to plan for their future long-term
care needs, by initiating family conversations, making improvements
in health and management of chronic disease, learning more about community
resources, considering home modification and assistive technology
and exploring legal and financial options. Research indicates that
planning ahead allows individuals more control over their future choices.
To learn more about Nebraska's Own Your Future Long-Term Care Planning
Awareness Campaign and a variety of long-term care and planning resources,
or call Answers 4 Families at 800-746-8420.