The Internal Revenue Service (IRS) has just announced the increased deductibility levels for long-term care insurance policies purchased in 2010.

First, the maximum deductible limit for an individual now exceeds $4,000.  That should get some people’s attention – even though few individuals qualify for the personal deduction.  Second, the levels were increased for 2010.  Pension contribution limits for 2010 were NOT increased.

Here are the 2010 limits:

Attained Age Before Close of Taxable Year

Age 40 or less:  $ 330

More than 40 but not more than 50:      $ 620

More than 50 but not more than 60:  $1,230

More than 60 but not more than 70:  $3,290

More than 70:  $4,110

The per-diem limitation under 7702(d)(4) for calendar year 2010 is $290.

Visit www.californialongtermcare.com for assistance with long term care insurance in California.