I 

108TH CONGRESS 

2D SESSION H. R. 4502

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

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

403(b) contract shall not be includible in gross income to the extent 

used to pay long-term care insurance premiums. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 3, 2004

Mr. TERRY (for himself, Mr. PAUL, Mr. NORWOOD, Mr. FEENEY, Mr. PETERSON of Minnesota, Mrs. NORTHUP, Mr. JONES of North Carolina, Mr. 

KENNEDY of Minnesota, Mr. MCHUGH, and Ms. GINNY BROWN-WAITE

of Florida) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to provide 

that distributions from an individual retirement plan, 

a section 401(k) plan, or a section 403(b) contract 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 2004’’. 
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1 SEC. 2. EXCLUSION FROM GROSS INCOME FOR DISTRIBU2 TIONS FROM INDIVIDUAL RETIREMENT 

3 PLANS, SECTION 401(K) PLANS, AND SECTION 

4 403(B) CONTRACTS WHICH ARE USED TO PAY 

5 LONG-TERM CARE INSURANCE PREMIUMS. 

6 (a) IN GENERAL.—Part III of subchapter B of chap7 ter 1 of the Internal Revenue Code of 1986 (relating to 

8 items specifically excluded from gross income) is amended 

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

10 ‘‘SEC. 139B. DISTRIBUTIONS FROM INDIVIDUAL RETIRE11 MENT PLANS, SECTION 401(K) PLANS, AND 

12 SECTION 403(B) CONTRACTS WHICH ARE 

13 USED TO PAY LONG-TERM CARE INSURANCE 

14 PREMIUMS. 

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

16 any distribution to an individual from—

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

18 ‘‘(2) from amounts attributable to employer 

19 contributions made pursuant to elective deferrals de20 scribed in subparagraph (A) or (C) of section 

21 402(g)(3), 

22 to the extent that such distributions do not exceed the 

23 long-term care insurance premiums paid during the tax24 able year for insurance covering the individual or the indi25 vidual’s spouse. 
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1 ‘‘(b) DENIAL OF DOUBLE BENEFIT.—The limitation 

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

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

4 taxpayer’s gross income for the taxable year. 

5 ‘‘(c) NO EFFECT ON QUALIFICATION.—An arrange6 ment shall not fail to be treated as a qualified cash or 

7 deferred arrangement (as defined in section 401(k)) or a 

8 contract described in section 403(b) by reason of permit9 ting distributions for the payment of long-term care insur10 ance premiums.’’

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

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

13 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 long-term care insurance premiums.’’

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

15 this section shall apply to distributions after the date of 

16 the enactment of this Act.

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