Long-Term Care and Retirement Security Act of 2003 - Amends the Internal Revenue Code to allow: (1) a deduction (increasing percentages with full deductibility as of 2008) for eligible long-term care insurance premiums for a taxpayer, spouse, and dependents and (2) long-term care insurance to be offered under cafeteria plans and flexible spending arrangements.Allows an income-adjusted (limited) credit for eligible individuals with long-term care needs.Sets forth specified requirements for qualifying long-term care insurance contracts.Treats an exchange of qualified long-term care insurance contracts as a disposition of property for which no gain or loss is recognized.