Argentum, a group for assisted living facilities, has a proposal that could make 529 college savings plans a more powerful retirement planning vehicle.
The group wants Congress to let care recipients and families use leftover 529 plan assets to pay for long-term care.
"A possible approach could allow individuals to pay for long-term care with their 529 plans after a certain age, without a tax penalty," the group says in a new discussion of long-term care funding ideas.
The Alexandria, Virginia-based group has a significant presence on Capitol Hill: Its political action committee contributed $159,500 to candidates during the 2021 election cycle. It gave $5,000 to the reelection campaign for Rep. Virginia Foxx, R-N.C., who serves as the chair of the House Education and Labor Committee, according to Federal Election Commission filings.
What It Means
Finding new ways to help your clients pay for long-term care is a hot topic.
Argentum and Assisted Living Care
Argentum notes that assisted living communities care for about 1 million U.S. residents and that the communities help keep the residents from needing skilled nursing care, which is typically more expensive.
Medicaid pays for nursing home care but traditionally has not paid for assisted living facility care.
Argentum itself represents facilities that employ 1.6 million people.
Argentum's Ideas
The group says Congress should modernize long-term care insurance rules, create incentives for employers to offer LTCI coverage and provide tax credits for family caregivers.
Congress should also support formal care worker training programs and help would-be care workers in other countries immigrate to the United States, the group says.
