“’Must Pass’ Spending Bill Includes 401(k) LTCI Premium Provision,” by Allison Bell, ThinkAdvisor
“A 401(k) plan participant could spend up to $2,500 per year in distributions on long-term care insurance premiums. The distributions would be included in taxable income but not subject to the 10% early withdrawal tax. The language is similar to the language in section 213 in the stand-alone version of the EARN Act.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
Fingers crossed for this provision to pass, although the Omnibus containing it is dubious fiscal policy.
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