Distributions from a defined contribution plan for the payment of certified long-term care insurance premiums if certain disclosure requirements are met, including that the insurance policy issuer of the certified long-term care insurance must file an “Issuer Disclosure” with the IRS.

401K rules provides that a long-term care premium statement will be accepted by a defined contribution plan only if the policy issuer files an Issuer Disclosure with the IRS describing the specific coverage life insurance product that is the subject of the long-term care premium statement.

Issuers should use the IRS procedures to make an Issuer Disclosure only if the issuer plans on filing a long-term care premium statement with a defined contribution plan with respect to a policyholder’s request for qualified long-term care distributions.

We can help you with more information relating to qualified long-term care distributions, including the filing and content requirements of an Issuer Disclosure, the content requirements of a long-term care premium statement, and the reporting requirements for Form 1099-LPS, Long-Term Care Premiums Paid Statement.