LTC Affordability Act (S. 4820)

Overview:

116th Congress (2019-2021)

Type: Use of Retirement Funds

Key Components:

  • Amend the IRC to exclude up to $2,500/year from gross income distributions from eligible retirement plans if used to purchase
    LTC insurance or chronic illness benefit under a life insurance policy.
  • Includes IRAs, 401K, 403b, 457 plans. The $2,500/year is indexed for inflation.

Key Authors:

  • Sen. Patrick Toomey (R-PA)
    Senate Finance

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