401(k) plans and long term care

[davef]

Other than the incidental benefit rule, and perhaps plan document language, is there anything to prevent a 401(k) plan from allowing participants to set aside dollars on a pre-tax basis to purchase long-term care insurance?

Looking at the IRS proposed regulations that were just issued, they say that the payment of accident or health insurance premiums from a qualified plan constitutes a taxable distribution. Considering the distributable events relating to elective deferrals, I would assume that any LTC premium payments attributable to deferrals could not happen until a person retired or terminated employment. Could it be considered a hardship (i.e., payment of deductible medical expenses)?

Although LTC cannot be offered through a cafeteria plan, would it be possible to funnel dollars from a cafeteria plan to a 401(k) plan, and then use them to pay LTC premiums from the 401(k) plan?

Just trying to explore some options.