II 

110TH CONGRESS 

1ST SESSION S. 1809 

To amend the Internal Revenue Code of 1986 to provide that distributions 

from an individual retirement plan, a section 401(k) plan, a section 

403(b) contract, or a section 457 plan shall not be includible in gross 

income to the extent used to pay long-term care insurance premiums. 

IN THE SENATE OF THE UNITED STATES 

JULY 18 (legislative day, JULY 17), 2007 

Mr. THUNE introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

that distributions from an individual retirement plan, 

a section 401(k) plan, a section 403(b) contract, or a 

section 457 plan shall not be includible in gross income 

to the extent used to pay long-term care insurance premiums. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Long-Term Care Act 

5 of 2007’’. 


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•S 1809 IS

1 SEC. 2. EXCLUSION FROM GROSS INCOME FOR DISTRIBU2 TIONS FROM INDIVIDUAL RETIREMENT 

3 PLANS, SECTION 401(k) PLANS, SECTION 

4 403(b) CONTRACTS, AND 457 PLANS WHICH 

5 ARE USED TO PAY LONG-TERM CARE INSUR6 ANCE PREMIUMS. 

7 (a) IN GENERAL.—Part III of subchapter B of chap8 ter 1 of the Internal Revenue Code of 1986 (relating to 

9 items specifically excluded from gross income) is amended 

10 by inserting after section 139A the following new item: 

11 ‘‘SEC. 139B. DISTRIBUTIONS FROM INDIVIDUAL RETIRE12 MENT PLANS, SECTION 401(k) PLANS, SEC13 TION 403(b) CONTRACTS, AND SECTION 457 

14 PLANS WHICH ARE USED TO PAY LONG-TERM 

15 CARE INSURANCE PREMIUMS. 

16 ‘‘(a) IN GENERAL.—Gross income shall not include 

17 any distribution to an individual from— 

18 ‘‘(1) an individual retirement plan, or 

19 ‘‘(2) amounts attributable to— 

20 ‘‘(A) any elective deferrals described in 

21 subparagraph (A) or (C) of section 402(g)(3), 

22 or 

23 ‘‘(B) any elective deferral under an eligible 

24 deferred compensation plan (as defined in sec25 tion 457(b)) of an eligible employer described in 

26 section 457(e)(1)(A), 


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•S 1809 IS

1 to the extent that such distributions do not exceed the eli2 gible long-term care premiums (as defined in section 

3 213(d)(10)) paid during the taxable year for insurance 

4 covering the individual or the individual’s spouse. 

5 ‘‘(b) DENIAL OF DOUBLE BENEFIT.—The limitation 

6 in section 213(d)(10) shall be reduced by the amount 

7 which would (but for subsection (a)) be includible in the 

8 taxpayer’s gross income for the taxable year. 

9 ‘‘(c) NO EFFECT ON QUALIFICATION.—An arrange10 ment shall not fail to be treated as a qualified cash or 

11 deferred arrangement (as defined in section 401(k)), a 

12 contract described in section 403(b), or an eligible de13 ferred compensation plan (as defined in section 457(b)) 

14 by reason of permitting distributions for the payment of 

15 eligible long-term care premiums.’’. 

16 (b) CLERICAL AMENDMENT.—The table of sections 

17 for such part III is amended by inserting after the item 

18 relating to section 139A the following new item: 

‘‘Sec. 139B. Distributions from individual retirement plans, section 401(k) 

plans, and section 403(b) contracts which are used to pay longterm care insurance premiums.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to distributions after the date of 

21 the enactment of this Act. 

Æ 


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