Paying Long-Term Care Premiums From a 401(k): The 2026 Rule
Reading Time: 7 minutesLong-Term Care Premiums From a 401(k): The 2026 Rule Starting in 2026, you can take up to the lesser of $2,500 a year or 10% of your vested balance from a 401(k), 403(b), or IRA to pay long-term care insurance premiums, without the 10% early-withdrawal penalty. The change comes from SECURE 2.0. Regular income tax […]
Is Your Life Insurance Policy a MEC? Signs It’s Drifted
Reading Time: 7 minutesA life insurance policy becomes a modified endowment contract, or MEC, when premiums paid in the first seven years exceed what the federal 7-pay test allows under Internal Revenue Code §7702A. Once a policy is a MEC, it stays one. Loans and withdrawals are taxed as income first and can carry a 10% penalty before […]