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IRS Starts to Implement a Long-Term Care Insurance Tax Incentive
By
Allison Bell
News May 20, 2026 at 04:23 PM
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What You Need To Know
- The guidance applies to clients with 401(k) plans and other defined contribution retirement plans.
- Sponsors can choose whether to offer the LTCI payment distribution option.
- Eligible clients can use at least $2,600 of the assets per year to pay for LTCI coverage without paying an early distribution penalty.
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