安全2.法案-第334条. Long-term Care Contracts Purchased with Retirement Plan Distributions

安全2.法案-第334条. Long-term Care Contracts Purchased with Retirement Plan Distributions

Under current law, retirement plans may only make distributions for approved reasons.

Existing law provides favorable 税 treatment for various forms of health and disability insurance and imposes a 10% 税 penalty on early distributions from 税-preferred retirement accounts unless certain exceptions apply.

Section 334 of the 安全2.2 .采取安全措施.0) permits retirement plans to distribute a certain amount per year for certain 长期护理保险 contracts.

The amount permitted to be distributed is the lowest of: (1) the amount paid by or assessed to the employee during the year for 长期护理保险; (2) 10% of the employee’s vested accrued benefit in the plan; or (3) $2,500 (this dollar amount will be indexed for inflation beginning in 2025).

Distributions from plans and IRAs would be exempt from the 10% penalty on early distributions if used to pay premiums for high quality, 长期护理保险.

This provision is effective for distributions that occur three years after December 29, 2022.

If you have any questions about 安全2.0, please contact a member of the Schneider Downs 退休的解决方案 team at (电子邮件保护).

This article is part of a series highlighting the impact of the 安全2.0 on retirement plan sponsors, participants and retirees. You can view our full catalog of 安全2.0的文章 在这里 or download our comprehensive 安全2.0的电子书 在这里.

关于安全2.0

安全2.0 was signed into law by President Biden on Dec. 在2022年，作为1美元的一部分.7 trillion omnibus spending bill.

This massive piece of legislation builds on the foundation that was laid by the 2019 Setting Every Community Up for Retirement Enhancement (SECURE) Act to further improve upon the success of the private employer-based retirement system by making it easier for businesses to offer retirement plans and for individuals to save for retirement.

安全2的全文.0, including provisions that affect pension and cash balance plans, 可以在第二页找到吗,046-2,公共汽车第404页 Consolidated Appropriations Act of 2023.

This article is part of a series highlighting the impact of the 安全2.0 on retirement plan sponsors, participants and retirees. You can view our full catalog of 安全2.0的文章 在这里 or download our comprehensive 安全2.0的电子书 在这里.

About Schneider Downs 退休的解决方案

Schneider Downs 退休的解决方案 has experience in all facets of qualified and non-qualified plan delivery, which allows us to be flexible to the needs and direction of our clients. Our specialized team of advisers and consultants provide objective advice and expertise to help plan sponsors govern their retirement plans appropriately, 降低风险, improve participant outcomes and support efficient and compliant plan operations. 

Schneider Downs 财富管理 Advisors, LP (SDWMA) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). SDWMA provides fee-based investment management services and financial planning services, along with fee-based retirement advisory and consulting services. Material discussed is meant for informational purposes only, and it is not to be construed as investment, 税务或法律建议. Please note that individual situations can vary. 因此, this information should be relied upon when coordinated with individual professional advice. Registration with the SEC does not imply any level of skill or training.