,,ii #aafth ,,congress #b;d ,session ,s4 #dhbj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #bj 7legislative day1 ,october #ai71 #bjbj,mr4 ,toomey introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to expand the use of retirement plan funds to obtain long-term care insurance1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,long-,term ,care ,affordability ,act4 #b4 ,long-term care contracts purchased with retirement plan distributions 7a7 ,in general ,section #djb of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7m7 ,distributions with respect to long-,term care insurance 7#a7 ,exclusion 7,a7 ,in general ,gross income of an individual for the taxable year does not include any distribution from an eligible retirement plan to the extent that the aggregate amount of such distributions does not exceed the amount paid by or assessed to such individual during the taxable year for or with respect to coverage described in subparagraph 7,b7 for the individual1 the individual's spouse1 or a dependent 7as defined in section #aeb1 determined without regard to subsections 7b77#a71 7b77#b71 and 7d77#a77;,b7 thereof7 of the individual4 7,b7 ,coverage described ,coverage described in this subparagraph is-- 7i7 a qualified long-term care insurance contract 7as defined in section #ggjb;,b7b77 covering qualified long-term care services 7as defined in section #ggjb;,b7c771 and 7ii7 coverage of the risk that an insured individual would become a chronically ill individual 7within the meaning of section #aja7;g77#d77;,b77 under a rider or other provision of a life insurance contract which satisfies the requirements of section #aja7;g77#c7 7determined without regard to subparagraph 7,d7 thereof74 7#b7 ,limitation 7,a7 ,in general ,the amount excluded from gross income under paragraph 7#a7 for any taxable year shall not exceed #b1ejj with respect to payments for coverage for any insured individual4 7,b7 ,exclusion available only to #a taxpayer ,the exclusion under paragraph 7#a7 shall be allowed to only #a taxpayer for any taxable year with respect to any #a insured individual4 7,c7 ,adjustment for inflation 7i7 ,in general ,in the case of any taxable year beginning after ,december #ca1 #bjbj1 the #b1ejj amount in subparagraph 7,a7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,if any increase determined under clause 7i7 is not a multiple of #aj1 such increase shall be rounded to the nearest multiple of #aj4 7#c7 ,eligible retirement plan ,for purposes of this subsection1 the term eligible retirement plan means any plan which-- 7,a7 is described in clause 7i717ii71 7iv71 7v71 or 7vi7 of subsection 7c77#h77;,b71 or 7,b7 is a defined contribution plan described in clause 7iii7 of subsection 7c77#h77;,b74 7#d7 ,distributions must otherwise be includible ,rules similar to the rules of subsection 7l77#c7 shall apply for purposes of this subsection4 7#e7 ,separately stated portions of a contract ,for purposes of this subsection1 the amount taken into account as paid during the taxable year for coverage described in paragraph 7#a77;,b77i7 includes premiums paid and charges assessed during such taxable year for any such coverage which is treated as a separate contract under section #ggjb;,b7e77#a71 if such separate contract is a qualified long-term care insurance contract 7as defined in section #ggjb;,b7b774 7#f7 ,coordination with other deductions ,the amounts excluded from gross income under paragraph 7#a7 shall not be taken into account under section #afb7l7 or #bac4 4 7b7 ,amounts treated as required minimum distribution ,section #dja7;a77#i7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,i7 ,treatment of distributions for long-term care insurance ,for purposes of this title1 if a distribution is required under this paragraph for a taxable year1 any distribution which is excluded from gross income under section #djb7m7 for the taxable year shall be treated as a distribution required under this paragraph4 4 7c7 ,conforming amendments 7#a7 ,section #dja7k77#b77;,b77i7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subclause 7,,iv71 by striking and at the end of subclause 7,v7 and inserting or1 and by adding at the end the following new subclause3 7,,vi7 as provided in section #djb7m71 and 4 7#b7 ,section #djc7;b77#aa7 of such ,code is amended by striking or at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 or1 and by inserting after subparagraph 7,c7 the following new subparagraph3 7,d7 for distributions to which section #djb7m7 applies4 4 7#c7 ,section #deg7;d77#a77;,a7 of such ,code is amended by striking or at the end of clause 7ii71 by striking the comma at the end of clause 7iii7 and inserting 1 or1 and by adding at the end the following new clause3 7iv7 as provided in section #djb7m71 4 7d7 ,reporting 7#a7 ,in general ,subpart ,b of part ,,iii of subchapter ,a of chapter #fa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fjej,z4 ,certain withdrawals from qualified arrangements for long-term care insurance 7a7 ,requirement of reporting ,any issuer of a qualified long-term care insurance contract 7as defined in section #ggjb;,b7b771 including a rider or other provision that is treated as a qualified long-term care insurance contract under section #ggjb;,b7e77#a71 or of coverage described in section #djb7m77#a77;,b77ii71 shall make a return1 according to forms or regulations prescribed by the ,secretary1 setting forth for each insured individual-- 7#a7 the aggregate amount of premiums and charges paid for the contract or coverage covering such individual during the calendar year1 7#b7 the name1 address1 and ,,tin of the owner of the contract1 if applicable1 and 7#c7 the name1 address1 and ,,tin of the insured under the contract4 7b7 ,statement ,to be furnished to persons with respect to whom information is required ,every person required to make a return under subsection 7a7 shall furnish to each individual whose name is required to be set forth in such return a written statement showing-- 7#a7 the name1 address1 and phone number of the information contact of the issuer of the qualified long-term care insurance contract or coverage described in section #djb7m77#a77;,b77ii71 and 7#b7 the aggregate amount of premiums and charges paid under the contract or coverage covering the insured individual during the calendar year4 ,the written statement required under the preceding sentence shall be furnished to the individual or individuals on or before ,january #ca of the year following the calendar year for which the return required under subsection 7a7 was required to be made4 7c7 ,contracts or coverage covering more than one insured ,in the case of contracts or coverage covering more than one insured1 the return and statement required by subsections 7a7 and 7b7 shall identify only the portion of the premium that is properly allocable to the insured in respect of whom the return or statement is made4 4 7#b7 ,clerical amendment ,the table of sections for subpart ,b of part ,,iii of subchapter ,a of chapter #fa of such ,code is amended by adding after the item relating to section #fjej,y the following new item3 ,sec4 #fjej,z4 ,certain withdrawals from qualified arrangements for long-term care insurance4 4 7e7 ,effective date ,the amendment made by this section shall apply to distributions received after the date of the enactment of this ,act4 #c4 ,information about long-term care insurance ,section #eaf of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #aadf7 is amended-- 7#a7 in the section heading1 by inserting and participation in long-term care insurance after savings2 7#b7 in subsection 7a71 by inserting and long-term care insurance after income savings2 7#c7 in subsection 7c7-- 7,a7 in paragraph 7#a71 by striking 2 and and inserting a semicolon2 7,b7 in paragraph 7#b71 by striking the period and inserting 2 and2 and 7,c7 by adding at the end the following3 7#c7 a description of long-term care insurance arrangements1 and information regarding matters relevant to enrolling in such insurance1 including-- 7,a7 a fact sheet for employers1 in an easily accessible format2 and 7,b7 a fact sheet for workers1 in an easily accessible format4 2 and 7#d7 in subsection 7d7-- 7,a7 in the matter preceding paragraph 7#a71 by inserting and long-term care insurance before the period at the end of the first sentence2 7,b7 in paragraph 7#c71 by adding and after the semicolon2 7,c7 in paragraph 7#d71 by striking 2 and and inserting a period2 7,d7 by redesignating paragraphs 7#a7 through 7#d7 as subparagraphs 7,a7 through 7,d71 respectively1 and adjusting the margins accordingly2 7,e7 by redesignating paragraph 7#e7 as paragraph 7#c72 7,f7 by inserting before subparagraph 7,a71 as so redesignated1 the following3 7#a7 ,with respect to retirement income savings-- 2 7,g7 by inserting before paragraph 7#c71 as so redesignated by subparagraph 7,e71 the following3 7#b7 ,with respect to long-term care insurance-- 7,a7 a description in simple terms of the common types of long-term care insurance available to both individuals and employers 7specifically including small employers71 including information on the tax benefits of such insurance under the ,internal ,revenue ,code of #aihf2 and 7,b7 materials explaining to employers in simple terms1 the characteristics and operation of the different long-term care insurance for their workers and what the basic legal requirements are under this ,act and the ,internal ,revenue ,code of #aihf1 including the steps to enroll in such insurance and including links to the fact sheets described in subsection 7c77#c74 2 and 7,h7 in paragraph 7#c71 as so redesignated by subparagraph 7,e7-- 7i7 by striking links to other and inserting ,links to other2 and 7ii7 by inserting and long-term care insurance after retirement income savings arrangements4