Navigating Retirement Healthcare Flashcards
7 cards from real CRPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Navigating Retirement Healthcare flashcards as text
Which of the following best describes a Health Savings Account (HSA) triple tax advantage?
Answer: Contributions are pre-tax, growth is tax-deferred, withdrawals for qualified expenses are tax-free
HSAs offer pre-tax contributions, tax-free growth, and tax-free withdrawals when used for qualified medical expenses, creating a unique triple tax benefit.
At what age can HSA funds be withdrawn for non-medical expenses without penalty, though ordinary income tax still applies?
Answer: 65
After age 65, HSA funds withdrawn for non-medical purposes are taxed as ordinary income but are not subject to the 20% penalty, making the HSA behave like a traditional IRA.
A retiree enrolled in Medicare Part A wants to continue contributing to his HSA. What is the correct rule?
Answer: He cannot contribute to an HSA once enrolled in any part of Medicare
Enrollment in any part of Medicare, including Part A alone, disqualifies an individual from making HSA contributions.
What is the primary purpose of a long-term care (LTC) insurance benefit trigger?
Answer: To define the conditions under which benefits begin to be paid
Benefit triggers define the qualifying events, typically inability to perform ADLs or cognitive impairment, that must occur before an LTC policy begins paying benefits.
Under the HIPAA tax-qualified LTC insurance standard, how many ADL deficiencies must a claimant have to qualify for benefits?
Answer: 2 of 6
HIPAA requires tax-qualified LTC policies to pay benefits when a claimant cannot perform at least 2 of the 6 standard activities of daily living.
A hybrid life/LTC insurance policy's primary advantage over a standalone LTC policy is:
Answer: Return of premium or death benefit if LTC benefits are never used
Hybrid policies address the 'use it or lose it' concern of traditional LTC insurance by providing a death benefit or return of premium if LTC benefits go unclaimed.
Which Medicaid planning strategy involves converting countable assets into an exempt asset to qualify for nursing home coverage?
Answer: Purchasing an annuity that complies with Medicaid rules
A Medicaid-compliant annuity converts countable assets into an income stream, helping a community spouse or applicant meet asset limits while preserving value.