--- title: 🔥 Unlock Tax-Free Long-Term Care with Old Non-Qualified Annuities description: Learn how to convert old non-qualified annuities into tax-free long-term care coverage using the Pension Protection Act. Maximize idle assets while protecting retirement. image: https://synergyannuity.com/hubfs/ChatGPT%20Image%20May%2019%2c%202025%2c%2008_00_47%20AM.png --- [Skip to content](https://synergyannuity.com/news-you-can-use/unlock-tax-free-long-term-care-with-old-non-qualified-annuities#main-content) ![Synergy Logo-#](https://synergyannuity.com/hs-fs/hubfs/Synergy%20Logo-%23.png?width=150&height=101&name=Synergy%20Logo-%23.png) - [Home](https://synergyannuity.com/) - [About](https://synergyannuity.com/about) - [Contact](https://synergyannuity.com/contact) Open main navigation Close main navigation - [Home](https://synergyannuity.com/) - [About](https://synergyannuity.com/about) - [Contact](https://synergyannuity.com/contact) - [Contact us](https://synergyannuity.com/contact) [Contact us](https://synergyannuity.com/contact) May 20, 2025, 9:01:39 AM # 🔥 Unlock Tax-Free Long-Term Care with Old Non-Qualified Annuities ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://synergyannuity.com/news-you-can-use/unlock-tax-free-long-term-care-with-old-non-qualified-annuities) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://synergyannuity.com/news-you-can-use/unlock-tax-free-long-term-care-with-old-non-qualified-annuities) [Twitter icon](https://twitter.com/intent/tweet?url=https://synergyannuity.com/news-you-can-use/unlock-tax-free-long-term-care-with-old-non-qualified-annuities) [pinterest-p icon](http://pinterest.com/pin/create/link/?url=https://synergyannuity.com/news-you-can-use/unlock-tax-free-long-term-care-with-old-non-qualified-annuities) [envelope icon](mailto:?body=https://synergyannuity.com/news-you-can-use/unlock-tax-free-long-term-care-with-old-non-qualified-annuities) Did you know that many retirees are sitting on idle annuity assets — and missing a massive tax-saving opportunity? Thanks to the **Pension Protection Act (PPA) of 2006**, there’s a powerful solution to turn old non-qualified annuities into **tax-free long-term care (LTC)** coverage. ### The Missed Opportunity in NQ Annuities 📊 *According to LIMRA*, over **$2 trillion** is currently held in non-qualified annuities, much of it untouched for years. 🔍 A separate industry report found that **only 14%** of annuity owners draw systematic income from their contracts. That means **over 80%** of these assets may just be sitting idle — exposed to tax and not working efficiently. So, what if that dormant money could do something more? ### Enter the Pension Protection Act The **PPA** allows for **tax-free withdrawals** from non-qualified annuities **if used to pay for qualified long-term care expenses** — when structured properly through a **PPA-compliant annuity**. Even better: by repositioning an old annuity, your client could **multiply its LTC value** while avoiding tax on the gain. --- ### 💡 Case in Point: Annuity Care II OneAmerica’s **Annuity Care II** is a standout. It allows you to: - Reposition an old NQ annuity **without triggering tax** - Leverage the full account for LTC coverage, **tax-free** - Access benefits with **no medical underwriting** (on base benefits) - Provide joint coverage for spouses using one asset --- ### Why Advisors Are Revisiting Old Contracts: ✅ **Tax Advantage** – Gains used for LTC are 100% tax-free ✅ **Asset Efficiency** – Turn idle funds into leverage (2–3x in LTC) ✅ **No Underwriting Headaches** – Ideal for older clients or impaired risk ✅ **Solves a Real Problem** – Over **70% of retirees over age 65** will need some form of long-term care¹ --- ### Don’t Walk Away from Old NQ Annuities — Reposition Them If your clients own older annuities they’re unlikely to use for income, it’s time to talk. With the PPA strategy, you can help them **protect their retirement, avoid taxes, and prepare for care** — all with dollars they’re not even touching. --- **¹Source: U.S. Department of Health and Human Services** *Stats: LIMRA Secure Retirement Institute; NAIC reports* [LTC](https://synergyannuity.com/news-you-can-use/tag/ltc), [Smart Tax Planning](https://synergyannuity.com/news-you-can-use/tag/smart-tax-planning) ## Related posts [![](https://synergyannuity.com/hs-fs/hubfs/AI-Generated%20Media/Images/The%20image%20depicts%20a%20splitscreen%20comparison%20between%20traditional%20longterm%20care%20insurance%20and%20life%20insurance%20with%20living%20benefit%20riders.jpeg?height=200&name=The%20image%20depicts%20a%20splitscreen%20comparison%20between%20traditional%20longterm%20care%20insurance%20and%20life%20insurance%20with%20living%20benefit%20riders.jpeg)](https://synergyannuity.com/news-you-can-use/living-benefit-riders-vs.-traditional-long-term-care-insurance-flexibility-and-access-redefined) [Life](https://synergyannuity.com/news-you-can-use/tag/life) ## [Living Benefit Riders vs. Traditional Long-Term Care Insurance: Flexibility and Access Redefined](https://synergyannuity.com/news-you-can-use/living-benefit-riders-vs.-traditional-long-term-care-insurance-flexibility-and-access-redefined) ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Jan 15, 2025, 9:30:00 AM When it comes to preparing for future healthcare needs, traditional long-term care (LTC) insurance... [Read more](https://synergyannuity.com/news-you-can-use/living-benefit-riders-vs.-traditional-long-term-care-insurance-flexibility-and-access-redefined) [![](https://synergyannuity.com/hs-fs/hubfs/Are%20you%20Covered%3F%20road%20sign%20with%20sun%20background.jpeg?height=200&name=Are%20you%20Covered%3F%20road%20sign%20with%20sun%20background.jpeg)](https://synergyannuity.com/news-you-can-use/indexed-universal-life-merging-security-and-prosperity-within-a-single-policy) ## ["Indexed Universal Life: Merging Security and Prosperity Within a Single Policy"](https://synergyannuity.com/news-you-can-use/indexed-universal-life-merging-security-and-prosperity-within-a-single-policy) ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Jan 31, 2024, 8:12:23 AM Indexed Universal Life (IUL) insurance has become increasingly popular in recent years as... [Read more](https://synergyannuity.com/news-you-can-use/indexed-universal-life-merging-security-and-prosperity-within-a-single-policy) [![](https://synergyannuity.com/hs-fs/hubfs/AI-Generated%20Media/Images/show%20uncle%20sam%20blowing%20up%20a%20balloon.jpeg?height=200&name=show%20uncle%20sam%20blowing%20up%20a%20balloon.jpeg)](https://synergyannuity.com/news-you-can-use/navigating-inflation-protection-in-long-term-care-insurance) [LTC](https://synergyannuity.com/news-you-can-use/tag/ltc) ## [Navigating Inflation Protection in Long-Term Care Insurance](https://synergyannuity.com/news-you-can-use/navigating-inflation-protection-in-long-term-care-insurance) ![Picture of Eric Estrada](https://synergyannuity.com/hs-fs/hubfs/EE%20Head%20shot%202.jpg?width=50&name=EE%20Head%20shot%202.jpg) [Eric Estrada](https://synergyannuity.com/news-you-can-use/author/eric-estrada) Dec 12, 2024, 7:00:00 AM As more individuals recognize the importance of securing Long-Term Care Insurance (LTCi) earlier in... 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