IRS Posts Guidance for Providers on Long-Term Care Distributions

The IRS has issued guidance for insurance providers and benefit plan sponsors on qualified long-term care distributions, following up on changes that went into effect at the end of last year under the SECURE 2.0 Act.

The notice published Wednesday includes guidance to providers of certified long-term care insurance on reporting requirements under the 2022 law. It also outlines safe harbors for plan administrators in making qualified long-term care distributions.

The IRS also extended the deadline for the sponsor of a defined contribution plan to make changes to permit qualified long-term care distributions. The extension does not apply to governmental ...