Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 - Free CRPC Practice Questions and Study Guide

The maximum tax-free amount payable from a qualified long-term care policy is influenced by specific guidelines set forth by the IRS. The correct answer reflects these guidelines properly, which state that the maximum amount that can be received tax-free from a qualified long-term care insurance policy is determined by the per diem limits established annually for tax purposes.

For 2024, the IRS has set this limit at $330 per day, which aligns with the correct answer. This figure is a reflection of the tax reforms and regulatory frameworks that help maintain the integrity of tax-free benefits associated with long-term care policies, ensuring that individuals can access necessary services without the burden of taxation.

Understanding these limits is essential for retirement planning as it allows clients to effectively budget for potential long-term care needs while benefiting from tax-advantaged solutions. This information can help clients make more informed decisions about their long-term health care planning and insurance purchases.