I 
109TH CONGRESS 
1ST SESSION 
H. R. 976
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 
FEBRUARY 17, 2005
Mr. TERRY (for himself, Mr. JONES of North Carolina, Mr. SESSIONS, Mr. 
BOUCHER, Mr. SAXTON, Mr. KENNEDY of Minnesota, Mr. PAUL, Ms. 
GINNY BROWN-WAITE of Florida, Mr. SIMPSON, Mr. MCCOTTER, Mrs. 
MUSGRAVE, Mr. SOUDER, Mr. GORDON, Mr. HYDE, and Mr. PETERSON 
of Minnesota) 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Long-Term Care Act 
of 2005’’.
SEC. 2. EXCLUSION FROM GROSS INCOME FOR DISTRIBU-
TIONS 
FROM 
INDIVIDUAL 
RETIREMENT 
PLANS, SECTION 401(K) PLANS, AND SECTION 
403(B) CONTRACTS WHICH ARE USED TO PAY 
LONG-TERM CARE INSURANCE PREMIUMS. 
(a) IN GENERAL.—Part III of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
items specifically excluded from gross income) is amended 
by inserting after section 139A the following new item: 
‘‘SEC. 139B. DISTRIBUTIONS FROM INDIVIDUAL RETIRE-
MENT PLANS, SECTION 401(K) PLANS, AND 
SECTION 
403(B) 
CONTRACTS 
WHICH 
ARE 
USED TO PAY LONG-TERM CARE INSURANCE 
PREMIUMS. 
‘‘(a) IN GENERAL.—Gross income shall not include 
any distribution to an individual from—
‘‘(1) an individual retirement plan, or 
‘‘(2) from amounts attributable to employer 
contributions made pursuant to elective deferrals de-
scribed in subparagraph (A) or (C) of section 
402(g)(3), 
to the extent that such distributions do not exceed the 
long-term care insurance premiums paid during the tax-
able year for insurance covering the individual or the indi-
vidual’s spouse.
‘‘(b) DENIAL OF DOUBLE BENEFIT.—The limitation 
in section 213(d)(10) shall be reduced by the amount 
which would (but for subsection (a)) be includible in the 
taxpayer’s gross income for the taxable year. 
‘‘(c) NO EFFECT ON QUALIFICATION.—An arrange-
ment shall not fail to be treated as a qualified cash or 
deferred arrangement (as defined in section 401(k)) or a 
contract described in section 403(b) by reason of permit-
ting distributions for the payment of long-term care insur-
ance premiums.’’
(b) CLERICAL AMENDMENT.—The table of sections 
for such part III is amended by inserting after the item 
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.’’
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to distributions after the date of 
the enactment of this Act.
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