Long-term care insurance premiums are reimbursable from a §401(h) account up to the IRC §213(d)(10) age-based annual limits, which scale by age each year and are indexed for inflation.
The age-based limits
For 2025, the IRC §213(d)(10) annual reimbursable LTC premium limits are approximately:
- Age 40 or younger: $480
- Age 41–50: $900
- Age 51–60: $1,800
- Age 61–70: $4,810
- Age 71+: $6,020
Qualified vs. non-qualified LTC policies
Only premiums for qualified long-term care insurance contracts (per IRC §7702B) are reimbursable. Hybrid life-LTC policies may have only a portion of premium qualifying — confirm with the policy carrier.
Coverage scope
Reimbursable LTC premiums include those paid for the retiree and the retiree's spouse, each subject to the age-based limit for their own age.
Educational only. This page is for general education on §401(h) accounts and qualified retirement plan design. It is not individualized investment, tax, or legal advice. Consult a qualified fiduciary advisor, enrolled actuary, and ERISA counsel before adopting a §401(h) sub-account.