SEC. 2. LONG-TERM CARE CONTRACTS PURCHASED WITH 
RETIREMENT PLAN DISTRIBUTIONS. 
(a) IN GENERAL.—Section 402 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(m) DISTRIBUTIONS WITH RESPECT
TO LONG- 
TERM CARE INSURANCE.— 
‘‘(1) EXCLUSION.— 
‘‘(A) IN GENERAL.—Gross income of an 
individual for the taxable year does not include 
any distribution from an eligible retirement 
plan to the extent that the aggregate amount of 
such distributions does not exceed the amount 
paid by or assessed to such individual during 
the taxable year for or with respect to coverage 
described in subparagraph (B) for the indi-
vidual, the individual’s spouse, or a dependent 
(as defined in section 152, determined without 
regard to subsections (b)(1), (b)(2), and 
(d)(1)(B) thereof) of the individual. 
‘‘(B) COVERAGE
DESCRIBED.—Coverage 
described in this subparagraph is— 
‘‘(i) a qualified long-term care insur-
ance contract (as defined in section 
7702B(b)) covering qualified long-term 
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care 
services 
(as 
defined 
in 
section 
7702B(c)), and 
‘‘(ii) coverage of the risk that an in-
sured individual would become a chron-
ically ill individual (within the meaning of 
section 101(g)(4)(B)) under a rider or 
other provision of a life insurance contract 
which satisfies the requirements of section 
101(g)(3) (determined without regard to 
subparagraph (D) thereof). 
‘‘(2) LIMITATION.— 
‘‘(A) IN GENERAL.—The amount excluded 
from gross income under paragraph (1) for any 
taxable year shall not exceed $2,500 with re-
spect to payments for coverage for any insured 
individual. 
‘‘(B) EXCLUSION AVAILABLE ONLY TO 1 
TAXPAYER.—The exclusion under paragraph 
(1) shall be allowed to only 1 taxpayer for any 
taxable year with respect to any 1 insured indi-
vidual. 
‘‘(C) ADJUSTMENT FOR INFLATION.— 
‘‘(i) IN GENERAL.—In the case of any 
taxable year beginning after December 31, 
2021, the $2,500 amount in subparagraph 
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(A) shall be increased by an amount equal 
to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2020’ for ‘cal-
endar year 2016’ in subparagraph 
(A)(ii) thereof. 
‘‘(ii) ROUNDING.—If any increase de-
termined under clause (i) is not a multiple 
of $10, such increase shall be rounded to 
the nearest multiple of $10. 
‘‘(3) ELIGIBLE RETIREMENT PLAN.—For pur-
poses of this subsection, the term ‘eligible retirement 
plan’ means any plan which— 
‘‘(A) is described in clause (i), (ii), (iv), 
(v), or (vi) of subsection (c)(8)(B), or 
‘‘(B) is a defined contribution plan de-
scribed in clause (iii) of subsection (c)(8)(B). 
‘‘(4) DISTRIBUTIONS MUST OTHERWISE BE IN-
CLUDIBLE.—Rules similar to the rules of subsection 
(l)(3) shall apply for purposes of this subsection. 
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‘‘(5) SEPARATELY STATED PORTIONS OF A CON-
TRACT.—For purposes of this subsection, the 
amount taken into account as paid during the tax-
able year for coverage described in paragraph 
(1)(B)(i) includes premiums paid and charges as-
sessed during such taxable year for any such cov-
erage which is treated as a separate contract under 
section 7702B(e)(1), if such separate contract is a 
qualified long-term care insurance contract (as de-
fined in section 7702B(b)). 
‘‘(6) COORDINATION
WITH
OTHER
DEDUC-
TIONS.—The amounts excluded from gross income 
under paragraph (1) shall not be taken into account 
under section 162(l) or 213.’’. 
(b) AMOUNTS TREATED
AS REQUIRED MINIMUM 
DISTRIBUTION.—Section 401(a)(9) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subparagraph: 
‘‘(J) TREATMENT OF DISTRIBUTIONS FOR 
LONG-TERM
CARE
INSURANCE.—For purposes 
of this title, if a distribution is required under 
this paragraph for a taxable year, any distribu-
tion which is excluded from gross income under 
section 402(m) for the taxable year shall be 
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treated as a distribution required under this 
paragraph.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 401(k)(2)(B)(i) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘or’’ at 
the end of subclause (V), by adding ‘‘or’’ at the end 
of subclause (VI), and by adding at the end the fol-
lowing new subclause: 
‘‘(VII) as provided in section 
402(m),’’. 
(2) Section 403(b)(11) of such Code is amend-
ed by striking ‘‘or’’ at the end of subparagraph (C), 
by striking the period at the end of subparagraph 
(D) and inserting ‘‘, or’’, and by inserting after sub-
paragraph (D) the following new subparagraph: 
‘‘(E) for distributions to which section 
402(m) applies.’’. 
(3) Section 457(d)(1)(A) of such Code is 
amended by striking ‘‘or’’ at the end of clause (iii), 
by striking the comma at the end of clause (iv) and 
inserting ‘‘, or’’, and by adding at the end the fol-
lowing new clause: 
‘‘(v) as provided in section 402(m),’’. 
(d) REPORTING.— 
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(1) IN GENERAL.—Subpart B of part III of 
subchapter A of chapter 61 of the Internal Revenue 
Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 6050Z. CERTAIN WITHDRAWALS FROM QUALIFIED AR-
RANGEMENTS FOR LONG-TERM CARE INSUR-
ANCE. 
‘‘(a) REQUIREMENT OF REPORTING.—Any issuer of 
a qualified long-term care insurance contract (as defined 
in section 7702B(b)), including a rider or other provision 
that is treated as a qualified long-term care insurance con-
tract under section 7702B(e)(1), or of coverage described 
in section 402(m)(1)(B)(ii), shall make a return, accord-
ing to forms or regulations prescribed by the Secretary, 
setting forth for each insured individual— 
‘‘(1) the aggregate amount of premiums and 
charges paid for the contract or coverage covering 
such individual during the calendar year, 
‘‘(2) the name, address, and TIN of the owner 
of the contract, if applicable, and 
‘‘(3) the name, address, and TIN of the insured 
under the contract. 
‘‘(b) STATEMENT TO BE FURNISHED TO PERSONS 
WITH RESPECT TO WHOM INFORMATION IS REQUIRED.— 
Every person required to make a return under subsection 
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(a) shall furnish to each individual whose name is required 
to be set forth in such return a written statement show-
ing— 
‘‘(1) the name, address, and phone number of 
the information contact of the issuer of the qualified 
long-term care insurance contract or coverage de-
scribed in section 402(m)(1)(B)(ii), and 
‘‘(2) the aggregate amount of premiums and 
charges paid under the contract or coverage covering 
the insured individual during the calendar year. 
The written statement required under the preceding sen-
tence shall be furnished to the individual or individuals 
on or before January 31 of the year following the calendar 
year for which the return required under subsection (a) 
was required to be made. 
‘‘(c) CONTRACTS
OR COVERAGE COVERING MORE 
THAN ONE INSURED.—In the case of contracts or cov-
erage covering more than one insured, the return and 
statement required by subsections (a) and (b) shall iden-
tify only the portion of the premium that is properly allo-
cable to the insured in respect of whom the return or 
statement is made.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for subpart B of part III of subchapter A of 
chapter 61 of such Code is amended by adding after 
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the item relating to section 6050Y the following new 
item: 
‘‘Sec. 6050Z. Certain withdrawals from qualified arrangements for long-term 
care insurance.’’. 
(e) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions received after the 
date of the enactment of this Act. 
SEC. 3. INFORMATION ABOUT LONG-TERM CARE INSUR-
ANCE. 
Section 516 of the Employee Retirement Income Se-
curity Act of 1974 (29 U.S.C. 1146) is amended— 
(1) in the section heading, by inserting ‘‘AND 
PARTICIPATION IN LONG-TERM CARE INSUR-
ANCE’’ after ‘‘SAVINGS’’; 
(2) in subsection (a), by inserting ‘‘and long- 
term care insurance’’ after ‘‘income savings’’; 
(3) in subsection (c)— 
(A) in paragraph (1), by striking ‘‘; and’’ 
and inserting a semicolon; 
(B) in paragraph (2), by striking the pe-
riod and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(3) a description of long-term care insurance 
arrangements, and information regarding matters 
relevant to enrolling in such insurance, including— 
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‘‘(A) a fact sheet for employers, in an eas-
ily accessible format; and 
‘‘(B) a fact sheet for workers, in an easily 
accessible format.’’; and 
(4) in subsection (d)— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘and long-term care insurance’’ be-
fore the period at the end of the first sentence; 
(B) in paragraph (3), by adding ‘‘and’’ 
after the semicolon; 
(C) in paragraph (4), by striking ‘‘; and’’ 
and inserting a period; 
(D) by redesignating paragraphs (1) 
through (4) as subparagraphs (A) through (D), 
respectively, and adjusting the margins accord-
ingly; 
(E) by redesignating paragraph (5) as 
paragraph (3); 
(F) by inserting before subparagraph (A), 
as so redesignated, the following: 
‘‘(1) With respect to retirement income sav-
ings—’’; 
(G) by inserting before paragraph (3), as 
so redesignated by subparagraph (E), the fol-
lowing: 
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‘‘(2) With respect to long-term care insur-
ance— 
‘‘(A) a description in simple terms of the 
common types of long-term care insurance 
available to both individuals and employers 
(specifically including small employers), includ-
ing information on the tax benefits of such in-
surance under the Internal Revenue Code of 
1986; and 
‘‘(B) materials explaining to employers in 
simple terms, the characteristics and operation 
of the different long-term care insurance for 
their workers and what the basic legal require-
ments are under this Act and the Internal Rev-
enue Code of 1986, including the steps to enroll 
in such insurance and including links to the 
fact sheets described in subsection (c)(3).’’; and 
(H) in paragraph (3), as so redesignated 
by subparagraph (E)— 
(i) by striking ‘‘links to other’’ and in-
serting ‘‘Links to other’’; and 
(ii) by inserting ‘‘and long-term care 
insurance’’ after ‘‘retirement income sav-
ings arrangements’’. 
Æ 
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