There are some tax saving methods to fund long-term care insurance, depending on your situation and the type of policy you have. Some of the possible methods are:

RMD - Reallocate Required Minimum Distributions

After age 72 consider using some of your Required Minimum Distributions from your qualified retirement accounts such as IRAs, 401k, 403b, 457, etc.

- **Using a health savings account (HSA)**. If you have a qualified high-deductible health insurance plan, you can contribute to an HSA and use the pre-tax money to pay for qualified long-term care insurance premiums³⁵. The amount you can contribute to an HSA in 2022 is $3,650 for individuals and $7,300 for families³. The amount you can use for long-term care insurance premiums is based on your age and the same limits as the tax deduction (see below)².

- **Deducting long-term care insurance premiums as a medical expense**. If you itemize your deductions, you can deduct a portion of your qualified long-term care insurance premiums as a medical expense²⁵. The amount you can deduct is based on your age and ranges from $450 to $5,640 per person in 2022³. However, you can only deduct the amount that exceeds 10% of your adjusted gross income (or 7.5% if you are 65 or older)²⁵.

- **Using a life insurance policy with a long-term care or chronic illness rider**. If you have a life insurance policy that has a feature that allows you to accelerate some or all of the death benefit if you need long-term care or become chronically ill, you can use the tax-free benefit to pay for your long-term care expenses²⁴. However, the benefit may be limited by a percentage of the death benefit or an IRS limit, and it may reduce the amount that your beneficiaries will receive after you die²⁴.

- **Using an annuity with a long-term care or chronic illness rider**. If you have an annuity that has a feature that provides additional income or withdrawals if you need long-term care or become chronically ill, you can use the tax-free benefit to pay for your long-term care expenses²⁵. However, the benefit may be limited by a percentage of the annuity value or an IRS limit, and it may reduce the amount that you or your beneficiaries will receive from the annuity²⁵.

- **Making a tax-free transfer from an annuity or life insurance policy**. If you have an annuity or life insurance policy that you no longer need or want, you can make a tax-free transfer (called a 1035 exchange) to pay for a qualified long-term care insurance policy or another annuity or life insurance policy with a long-term care or chronic illness rider²⁴. This way, you can avoid paying taxes on the gains from the original policy and use them for long-term care coverage instead²⁴.

- **Using other assets or income sources**. If you have other assets or income sources that are not subject to taxes or have favorable tax treatment, such as Roth IRAs, municipal bonds, home equity, rental income, etc., you can use them to pay for your long-term care expenses without increasing your tax burden¹ . However, you should consider the opportunity cost and the impact on your overall financial plan before using these assets or income sources for long-term care¹ .

These are some of the tax saving methods to fund long-term care insurance, but they may not apply to everyone or every situation. You should consult with a tax professional and a insurance advisor before choosing any of these methods to make sure they are suitable for your needs and goals.

(1) IRS Reveals 2022 Long-Term Care Tax Deduction Amounts and HSA .... https://www.ltcnews.com/articles/irs-reveals-2022-long-term-care-tax-deduction-amounts-and-hsa-contribution-limits.

(2) Long-Term Care Planning vs. Taxes: Finding a Healthy Balance. https://www.kiplinger.com/retirement/long-term-care-planning-vs-tax-planning.

(3) 4 Tax-Friendly Ways to Pay for Long-Term-Care Insurance. https://www.kiplinger.com/article/insurance/t036-c001-s003-tax-friendly-ways-to-pay-for-long-term-care-insura.html.

(4) 6 Ways to Pay for Long-Term Care if You Can't Afford Insurance - U.S. News. https://money.usnews.com/money/personal-finance/saving-and-budgeting/articles/2018-04-13/6-ways-to-pay-for-long-term-care-if-you-cant-afford-insurance.

(5) Self-funding your long-term care - your options | MoneyHelper. https://www.moneyhelper.org.uk/en/family-and-care/long-term-care/self-funding-your-long-term-care-your-options.