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Question

Should I use my retirement savings to fund long-term care insurance premiums?

Answer

It depends on your income tax bracket, your plan’s availability of QLTCDs, and whether you have other LTC funding strategies in place. While this provision removes the early withdrawal penalty, the distribution is still taxed as income,  which can be meaningful in high-earning years. Talk to your wealth advisor to determine whether this approach fits your overall plan.

Related FAQs

Can I use my 401(k) to pay for long-term care insurance without a penalty?

What is a qualified long-term care distribution (QLTCD)?

How do I find out if my employer’s 401(k) plan offers qualified long-term care distributions?
Insurance Solutions Disability Retirement Planning Long-Term Care Living in Retirement Healthcare & Medicare Health Conditions FAQs
Last Updated July 7, 2026
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