IRS Publishes Notice for Qualified Long-Term Care Distributions, Extends Plan Amendment Deadline

The IRS has provided guidance on qualified long-term care distributions, a new type of retirement plan distribution created by the SECURE 2.0 Act. The notice establishes requirements for insurance issuers to make disclosures to the IRS and file premium statements with retirement plans, creates safe harbors for plan administrators making these distributions, and sets reporting requirements under the new Form 1099-LPS. The guidance allows employees to withdraw from defined contribution plans to pay long-term care insurance premiums without the 10 percent early withdrawal penalty, subject to annual limits of the lesser of premiums paid, 10 percent of vested account balance, ...