I 
110TH CONGRESS 
1ST SESSION H. R. 3088 
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 HOUSE OF REPRESENTATIVES 
JULY 18, 2007 
Mr. TERRY (for himself, Mr. FEENEY, Mr. PAUL, Mr. SOUDER, and Mr. 
SAXTON) introduced the following bill; which was referred to the Com-
mittee 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, 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 pre-
miums. 
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 2007’’. 
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SEC. 2. EXCLUSION FROM GROSS INCOME FOR DISTRIBU-
TIONS 
FROM 
INDIVIDUAL 
RETIREMENT 
PLANS, 
SECTION 
401(k) 
PLANS, 
SECTION 
403(b) CONTRACTS, AND 457 PLANS WHICH 
ARE USED TO PAY LONG-TERM CARE INSUR-
ANCE 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, SEC-
TION 403(b) CONTRACTS, AND SECTION 457 
PLANS 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— 
‘‘(A) any elective deferrals described in 
subparagraph (A) or (C) of section 402(g)(3), 
or 
‘‘(B) any elective deferral under an eligible 
deferred compensation plan (as defined in sec-
tion 457(b)) of an eligible employer described in 
section 457(e)(1)(A), 
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to the extent that such distributions do not exceed the eli-
gible long-term care premiums (as defined in section 
213(d)(10)) paid during the taxable year for insurance 
covering the individual or the individual’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)), a 
contract described in section 403(b), or an eligible de-
ferred compensation plan (as defined in section 457(b)) 
by reason of permitting distributions for the payment of 
eligible long-term care 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. 
Æ 
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