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SECURE 2.0 Early Distribution Tax Exception for Long-Term Care Premiums
Groom Law Group 
[Guidance Overview] Jan. 7, 2026 "A new exception from the additional 10% tax for early distributions from defined contribution plans (including 403(b) and 457(b) plans) is now available.... Section 334 of SECURE 2.0 allows in-service distributions to pay for certain LTC premium payments.... Even if the in-service distribution option is not offered, presumably a participant who has a distributable event can claim the 10% tax exception via Form 5329, though the form is not yet updated." MORE >> |
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