IRS Releases Guidance on Qualified Long-Term Care Distributions from DC Plans

The Internal Revenue Service (IRS) issued Notice 2026-33 providing guidance for benefit plan sponsors and insurance providers on qualified long-term care distributions from defined contribution (DC) plans, changes allowed under the SECURE 2.0 Act.

Notice 2026-33 explains reporting requirements under the SECURE 2.0 Act and outlines safe harbors for plan administrators in making qualified long-term care distributions. The IRS also extended the deadline for plan sponsors of DC plans to make changes to permit qualified long-term care distributions, although the extension does not apply to governmental plans or plans maintained by a public school.

• Plan sponsors using this provision have a deadline of December 31, 2027, to adopt conforming plan amendments.
• If the plan is a collectively bargained plan, the deadline is December 31, 2028.
• If the plan is a governmental plan, the deadline is December 31, 2029.