What you need to know about the WA State Long-Term Care Trust Act in about 45 seconds…
The Act becomes effective January 1, 2022 for all W-2 employees in the state.
- The tax is .58 per $100 of gross income for all W-2s, including CEOs. There is no cap, so the more you make, the more you pay on an unlimited basis.
- The LIFETIME benefit is $36,500 per person. At today’s average monthly costs in Washington, that would last about 4 and a half months.
- The benefits can only be used in Washington. If you retire in Arizona or any other state or country, you forfeit your benefits.
- In fact, if you move out of state for a five-year period, you forfeit your benefits, even if you move back.
- If you die before using it, there is no benefit to your beneficiaries or estate.
- You can opt-out by getting your own policy, but the opt-out period is limited to October 1, 2021 to December 31, 2022.
- In order to opt-out, you must attest that you’ve purchased an individual LTC by November 1, 2021. This is a change from July as the state has given extra time to purchase insurance and to opt-out, since the pandemic caused them to miss educating employers and employees in 2020.
The Act doesn’t offer the best possible options for funding needs as we age.
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