,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #dhbj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,octob] #bj            
7legislative day1 ,octob] #ai71         
#bjbj,mr4 ,toomey introduc$ ! foll[+    
bill2 :i* 0 read twice & ref]r$ to !    
,committee on ,f9ance  ,a ,,bill  ,to   
am5d ! ,int]nal ,rev5ue ,code ( #aihf to
 exp& ! use ( retirem5t plan funds to   
obta9 long-t]m c>e insurance1 & = o!r   
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,long-,t]m ,c>e            
,af=dability ,act4  #b4 ,long-t]m c>e   
contracts pur*as$ ) retirem5t plan      
di/ributions  7a7 ,9 g5]al ,section #djb
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7m7 ,di/ributions ) respect
 to long-,t]m c>e insurance  7#a7       
,exclusion  7,a7 ,9 g5]al ,gross income 
( an individual = ! taxable ye> does n  
include any di/ribution f an eligible   
retirem5t plan to ! ext5t t ! aggregate 
am\nt ( su* di/ributions does n exce$ ! 
am\nt paid by or assess$ to su*         

individual dur+ ! taxable ye> = or )    
respect to cov]age describ$ 9           
subp>agraph 7,b7 = ! individual1 !      
individual's sp\se1 or a dep5d5t 7z     
def9$ 9 section #aeb1 det]m9$ )\t reg>d 
to subsections 7b77#a71 7b77#b71 &      
7d77#a77;,b7 !re(7 ( ! individual4  7,b7
 ,cov]age describ$ ,cov]age describ$ 9  
?is subp>agraph is-- 7i7 a qualifi$     
long-t]m c>e insurance contract 7z def9$
 9 section #ggjb;,b7b77 cov]+ qualifi$  
long-t]m c>e s]vices 7z def9$ 9 section 
#ggjb;,b7c771 &  7ii7 cov]age ( ! risk t
 an insur$ individual w\ld become a     
*ronically ill individual 7)9 ! mean+ ( 
section #aja7;g77#d77;,b77 "u a rid] or 
o!r provision ( a life insurance        
contract :i* satisfies ! requirem5ts (  
section #aja7;g77#c7 7det]m9$ )\t reg>d 
to subp>agraph 7,d7 !re(74  7#b7        
,limitation  7,a7 ,9 g5]al ,! am\nt     
exclud$ f gross income "u p>agraph 7#a7 
= any taxable ye> %all n exce$ #b1ejj ) 
respect to paym5ts = cov]age = any      
insur$ individual4  7,b7 ,exclusion     

available only to #a taxpay] ,!         
exclusion "u p>agraph 7#a7 %all be all[$
 to only #a taxpay] = any taxable ye> ) 
respect to any #a insur$ individual4    
7,c7 ,adju/m5t = inflation  7i7 ,9 g5]al
 ,9 ! case ( any taxable ye> beg9n+ aft]
 ,decemb] #ca1 #bjbj1 ! #b1ejj am\nt 9  
subp>agraph 7,a7 %all be increas$ by an 
am\nt equal to-- 7,i7 su* doll> am\nt1  
multipli$ by  7,,ii7 ! co/-(-liv+       
adju/m5t det]m9$ "u section #a7;f77#c7 =
 ! cal5d> ye> 9 :i* ! taxable ye> beg9s1
 det]m9$ by sub/itut+ cal5d> ye> #bjai =
 cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7
 !re(4  7ii7 ,r\nd+ ,if any increase    
det]m9$ "u clause 7i7 is n a multiple ( 
#aj1 su* increase %all be r\nd$ to !    
ne>e/ multiple ( #aj4  7#c7 ,eligible   
retirem5t plan ,= purposes ( ?is        
subsection1 ! t]m eligible retirem5t    
plan means any plan :i*-- 7,a7 is       
describ$ 9 clause 7i717ii71 7iv71 7v71  
or 7vi7 ( subsection 7c77#h77;,b71 or   
7,b7 is a def9$ contribution plan       
describ$ 9 clause 7iii7 ( subsection    

7c77#h77;,b74  7#d7 ,di/ributions mu/   
o!rwise be includible ,rules simil> to !
 rules ( subsection 7l77#c7 %all apply =
 purposes ( ?is subsection4  7#e7       
,sep>ately /at$ portions ( a contract ,=
 purposes ( ?is subsection1 ! am\nt tak5
 into acc\nt z paid dur+ ! taxable ye> =
 cov]age describ$ 9 p>agraph            
7#a77;,b77i7 includes premiums paid &   
*>ges assess$ dur+ su* taxable ye> = any
 su* cov]age :i* is treat$ z a sep>ate  
contract "u section #ggjb;,b7e77#a71 if 
su* sep>ate contract is a qualifi$      
long-t]m c>e insurance contract 7z def9$
 9 section #ggjb;,b7b774  7#f7          
,coord9ation ) o!r d$uctions ,! am\nts  
exclud$ f gross income "u p>agraph 7#a7 
%all n be tak5 into acc\nt "u section   
#afb7l7 or #bac4  4  7b7 ,am\nts treat$ 
z requir$ m9imum di/ribution ,section   
#dja7;a77#i7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new subp>agraph3  7,i7 ,treatm5t 
( di/ributions = long-t]m c>e insurance 
,= purposes ( ?is title1 if a           

di/ribution is requir$ "u ?is p>agraph =
 a taxable ye>1 any di/ribution :i* is  
exclud$ f gross income "u section       
#djb7m7 = ! taxable ye> %all be treat$ z
 a di/ribution requir$ "u ?is p>agraph4 
4  7c7 ,con=m+ am5dm5ts  7#a7 ,section  
#dja7k77#b77;,b77i7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by /rik+ or at !
 end ( subclause 7,,iv71 by /rik+ & at !
 end ( subclause 7,v7 & ins]t+ or1 & by 
add+ at ! end ! foll[+ new subclause3   
7,,vi7 z provid$ 9 section #djb7m71 &  4
  7#b7 ,section #djc7;b77#aa7 ( su*     
,code is am5d$ by /rik+ or at ! end (   
subp>agraph 7,b71 by /rik+ ! p]iod at ! 
end ( subp>agraph 7,c7 & ins]t+ 1 or1 & 
by ins]t+ aft] subp>agraph 7,c7 ! foll[+
 new subp>agraph3  7,d7 = di/ributions  
to :i* section #djb7m7 applies4  4  7#c7
 ,section #deg7;d77#a77;,a7 ( su* ,code 
is am5d$ by /rik+ or at ! end ( clause  
7ii71 by /rik+ ! comma at ! end ( clause
 7iii7 & ins]t+ 1 or1 & by add+ at ! end
 ! foll[+ new clause3  7iv7 z provid$ 9 
section #djb7m71  4  7d7 ,report+  7#a7 

,9 g5]al ,subp>t ,b ( "p ,,iii (        
sub*apt] ,a ( *apt] #fa ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #fjej,z4
 ,c]ta9 )drawals f qualifi$ arrangem5ts 
= long-t]m c>e insurance  7a7           
,requirem5t ( report+ ,any issu] ( a    
qualifi$ long-t]m c>e insurance contract
 7z def9$ 9 section #ggjb;,b7b771       
includ+ a rid] or o!r provision t is    
treat$ z a qualifi$ long-t]m c>e        
insurance contract "u section           
#ggjb;,b7e77#a71 or ( cov]age describ$ 9
 section #djb7m77#a77;,b77ii71 %all make
 a return1 accord+ to =ms or regulations
 prescrib$ by ! ,secret>y1 sett+ =? =   
ea* insur$ individual-- 7#a7 ! aggregate
 am\nt ( premiums & *>ges paid = !      
contract or cov]age cov]+ su* individual
 dur+ ! cal5d> ye>1  7#b7 ! "n1 address1
 & ,,t9 ( ! own] ( ! contract1 if       
applicable1 &  7#c7 ! "n1 address1 &    
,,t9 ( ! insur$ "u ! contract4  7b7     
,/atem5t ,to be furni%$ to p]sons )     
respect to :om in=mation is requir$ ,e  

p]son requir$ to make a return "u       
subsection 7a7 %all furni% to ea*       
individual ^: "n is requir$ to be set =?
 9 su* return a writt5 /atem5t %[+--    
7#a7 ! "n1 address1 & phone numb] ( !   
in=mation contact ( ! issu] ( ! qualifi$
 long-t]m c>e insurance contract or     
cov]age describ$ 9 section              
#djb7m77#a77;,b77ii71 &  7#b7 !         
aggregate am\nt ( premiums & *>ges paid 
"u ! contract or cov]age cov]+ ! insur$ 
individual dur+ ! cal5d> ye>4  ,! writt5
 /atem5t requir$ "u ! prec$+ s5t5ce %all
 be furni%$ to ! individual or          
individuals on or be=e ,janu>y #ca ( !  
ye> foll[+ ! cal5d> ye> = :i* ! return  
requir$ "u subsection 7a7 0 requir$ to  
be made4  7c7 ,contracts or cov]age     
cov]+ m ?an "o insur$ ,9 ! case (       
contracts or cov]age cov]+ m ?an "o     
insur$1 ! return & /atem5t requir$ by   
subsections 7a7 & 7b7 %all id5tify only 
! portion ( ! premium t is prop]ly      
allocable to ! insur$ 9 respect ( :om ! 
return or /atem5t is made4  4  7#b7     

,cl]ical am5dm5t ,! table ( sections =  
subp>t ,b ( "p ,,iii ( sub*apt] ,a (    
*apt] #fa ( su* ,code is am5d$ by add+  
aft] ! item relat+ to section #fjej,y ! 
foll[+ new item3  ,sec4 #fjej,z4 ,c]ta9 
)drawals f qualifi$ arrangem5ts =       
long-t]m c>e insurance4  4  7e7         
,effective date ,! am5dm5t made by ?is  
section %all apply to di/ributions      
receiv$ aft] ! date ( ! enactm5t ( ?is  
,act4  #c4 ,in=mation ab\t long-t]m c>e 
insurance ,section #eaf ( ! ,employee   
,retirem5t ,income ,security ,act (     
#aigd 7#bi ,u4,s4,c4 #aadf7 is am5d$--  
7#a7 9 ! section head+1 by ins]t+ &     
p>ticipation 9 long-t]m c>e insurance   
aft] sav+s2  7#b7 9 subsection 7a71 by  
ins]t+ & long-t]m c>e insurance aft]    
income sav+s2  7#c7 9 subsection 7c7--  
7,a7 9 p>agraph 7#a71 by /rik+ 2 & &    
ins]t+ a semicolon2  7,b7 9 p>agraph    
7#b71 by /rik+ ! p]iod & ins]t+ 2 &2 &  
7,c7 by add+ at ! end ! foll[+3  7#c7 a 
description ( long-t]m c>e insurance    
arrangem5ts1 & in=mation reg>d+ matt]s  

relevant to enroll+ 9 su* insurance1    
includ+-- 7,a7 a fact %eet = employ]s1 9
 an easily accessible =mat2 &  7,b7 a   
fact %eet = work]s1 9 an easily         
accessible =mat4  2 &  7#d7 9 subsection
 7d7-- 7,a7 9 ! matt] prec$+ p>agraph   
7#a71 by ins]t+ & long-t]m c>e insurance
 be=e ! p]iod at ! end ( ! fir/ s5t5ce2 
7,b7 9 p>agraph 7#c71 by add+ & aft] !  
semicolon2  7,c7 9 p>agraph 7#d71 by    
/rik+ 2 & & ins]t+ a p]iod2  7,d7 by    
r$esignat+ p>agraphs 7#a7 ?r\gh 7#d7 z  
subp>agraphs 7,a7 ?r\gh 7,d71           
respectively1 & adju/+ ! m>g9s          
accord+ly2  7,e7 by r$esignat+ p>agraph 
7#e7 z p>agraph 7#c72  7,f7 by ins]t+   
be=e subp>agraph 7,a71 z s r$esignat$1 !
 foll[+3  7#a7 ,) respect to retirem5t  
income sav+s--  2  7,g7 by ins]t+ be=e  
p>agraph 7#c71 z s r$esignat$ by        
subp>agraph 7,e71 ! foll[+3  7#b7 ,)    
respect to long-t]m c>e insurance-- 7,a7
 a description 9 simple t]ms ( ! common 
types ( long-t]m c>e insurance available
 to bo? individuals & employ]s          

7specifically includ+ small employ]s71  
includ+ in=mation on ! tax b5efits ( su*
 insurance "u ! ,int]nal ,rev5ue ,code (
 #aihf2 &  7,b7 mat]ials expla9+ to     
employ]s 9 simple t]ms1 ! *>act]i/ics & 
op]ation ( ! diff]5t long-t]m c>e       
insurance = _! work]s & :at ! basic     
legal requirem5ts are "u ?is ,act & !   
,int]nal ,rev5ue ,code ( #aihf1 includ+ 
! /eps to enroll 9 su* insurance &      
includ+ l9ks to ! fact %eets describ$ 9 
subsection 7c77#c74  2 &  7,h7 9        
p>agraph 7#c71 z s r$esignat$ by        
subp>agraph 7,e7-- 7i7 by /rik+ l9ks to 
o!r & ins]t+ ,l9ks to o!r2 &  7ii7 by   
ins]t+ & long-t]m c>e insurance aft]    
retirem5t income sav+s arrangem5ts4