Secure Act LTCi 2.0 Takes Effect in 2026
February 11th, 2026
SECURE 2.0 and Long-Term Care Insurance: Section 334 of the Act permits retirement plans to distribute up to $2,500 per year for the payment of premiums for certain specified long term care insurance contracts. Distributions from plans to pay (qualifying) long-term care insurance premiums are exempt from the additional 10% tax on early distributions.
SECURE 2.0 Act: Key Changes Taking Effect in 2026 - WilkinGuttenplan
Penalty-Free Distributions for Long-Term Care Insurance Premiums: Another change in effect in 2026 allows retirement plans to permit distributions for the payment of qualified long-term care insurance premiums. These withdrawals are exempt from the 10% early-distribution penalty that would normally apply.
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