Illustration of qualified long-term care distributions under SECURE 2.0 section 334 and IRS Notice 2026-33 — penalty-free 401(k) money for LTC insurance premiums up to $2,600
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Penalty-Free 401(k) for LTC Insurance: Notice 2026-33 Guide

BySW Accounting admin

Can you use 401(k) money to pay long-term care insurance premiums without the 10% penalty? Yes — within limits. Under SECURE 2.0 Act §334 (effective for distributions after December 29, 2025), a defined contribution plan may permit “qualified long-term care distributions” under new IRC §401(a)(39). The annual cap is the LEAST of: (1) the amount…