Long-Term Care Savings Account Act of 1989

Summary

Long-Term Care Savings Account Act of 1989 - Amends the Internal Revenue Code to allow an individual income tax deduction for contributions to a savings account established to pay the long-term care expenses of an individual. Limits the deduction to $2,000 annually (adjusted for inflation). Disallows the deduction unless the beneficiary is at least 25 years old. Requires 50 percent of any account balance to be distributed when the beneficiary attains age 72, with the remainder to be distributed the following year. Permits an exclusion from gross income of account distributions used to pay the long-term care expenses of the beneficiary. Exempts an account from taxation (except for the tax on unrelated business income of a charitable organization), unless a contributor or the beneficiary engages in specified prohibited transactions in connection with it. Imposes a ten percent surtax on distributions not used for long-term care. Requires the account trustee to report to the Secretary of the Treasury and to the account's beneficiary concerning the account. Imposes a penalty for failure to report. Allows taxpayers who do not otherwise itemize deductions to deduct for contributions to a long-term care savings account. Imposes penalty taxes in connection with excess contributions or prohibited transactions associated with an account.

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Documents

2 official files

• Introduced in House (text)

  Introduced in House · EN

  ViewDownloadOpen at official source

• Introduced in House

  summary · EN · 3 January 1989

  Open at official source

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