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Question

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

Answer

A QLTCD is a distribution from an eligible defined contribution plan, such as a 401(k) or 403(b), used to pay premiums for certified long-term care insurance. Under Section 334 of the SECURE 2.0 Act, these distributions are exempt from the 10% early withdrawal penalty, though they remain subject to ordinary income tax.

Related FAQs

Are qualified long-term care distributions available from an IRA?

How do I find out if my employer’s 401(k) plan offers qualified long-term care distributions?

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