What qualifies for the exception for distributions for long-term care premiums?

An eligible distribution for long-term care premiums is a distribution from a retirement plan made for long-term care insurance. Only a long-term care insurance policy that provides for high quality coverage is eligible for early distribution and waiver of the penalty.

The amount eligible for the exception is limited to $2,500 or 10% of the present value of the vested account balance. Only distributions made after December 29, 2025 qualify.