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Easier Use of Retirement Funds for Long-Term Care Insurance

New rules allow individuals to use retirement plan funds to pay for long-term care insurance, potentially helping cover future care costs. Up to $2,500 annually can be excluded from taxable income for this purpose. The act also requires reporting of such distributions and improves access to information about long-term care insurance.
Key points
You can withdraw up to $2,500 annually from your retirement account for long-term care insurance without paying taxes.
This tax-free amount will be adjusted annually for inflation.
Insurance companies will be required to report information about long-term care insurance payments to the IRS.
More information about long-term care insurance will be made available to employees and employers.
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Expired
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Additional Information
Print number: 117_S_2415
Sponsor: Sen. Toomey, Patrick [R-PA]
Process start date: 2021-07-21
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Long-Term Care Affordability Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_2415.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-07-21.

What are the main provisions?

Key points include:

  • You can withdraw up to $2,500 annually from your retirement account for long-term care insurance without paying taxes.
  • This tax-free amount will be adjusted annually for inflation.
  • Insurance companies will be required to report information about long-term care insurance payments to the IRS.
  • More information about long-term care insurance will be made available to employees and employers.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Toomey, Patrick [R-PA].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

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