# [Health Insurance] 67, Tax Treatment of LTC Insurance and HSA Distributions

Page: https://stenobird.com/podcast/insurance-exam-prep-7644557/health-insurance-67-tax-treatment-of-ltc-insurance-and-hsa-distributions
Text version: https://stenobird.com/podcast/insurance-exam-prep-7644557/health-insurance-67-tax-treatment-of-ltc-insurance-and-hsa-distributions.md
Podcast: [Insurance Exam Prep](https://stenobird.com/podcast/insurance-exam-prep-7644557)
Published: 2026-06-02T23:26:01+00:00
Episode link: https://open-exam-prep.com/
Audio file: https://episodes.captivate.fm/episode/109908c4-a602-4590-9739-3cebc0fe8dbd.mp3
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Duration seconds: 205

## Resource

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Premiums for tax-qualified LTC insurance can be partially deducted based on the policyholder's age. - Benefits from a tax-qualified LTC policy are received income-tax-free, but only up to a federally set per diem limit. - HSA distributions used for qualified medical expenses are always free from both income tax and penalties. - Using HSA funds for non-qualified expenses before age 65 results in the withdrawal being subject to both income tax and a 20% penalty. - For individuals age 65 and older, the 20% penalty on non-qualified HSA distributions is waived, though the amount is still subject to ordinary income tax. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep

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