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Ask the expert, Dennis H. Lentin

What is the major difference between Tax Qualified (TQ) and Non Tax Qualified Plans(NTQ)?

You may be able to deduct all or part of the Tax Qualified premium as a health expense from you income tax, but you must surpass the 7 ½% threshold, which most people can’t do. Some agents will tell you that you may be taxed on the benefits, but there is a conflicting Federal Statue that says the benefits of any health plan can not be taxed.

The most important part of the difference between TQ and NTQ is that with a NTQ plan medically necessary may be a plan trigger, with a TQ plan you must need help in two of the six activities of daily living and it must be expected to last 90 days before you can receive help.

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Dennis H. Lentin
DL Financial Consultants
3852 Black Forest Circle,
Boynton Beach, Florida 33436