At 59 and a Half

• Once you reach retirement age for your IRA, you can take distributions out as needed. If you have a Roth IRA, the distribution isn't taxed and you can use the monies for long term care insurance. If you are taking distributions from a traditional IRA, you will pay income taxes on the distribution. The after-tax distribution can be used to purchase anything one wishes, including long term care insurance.
  
  

Prior to Retirement

• Money accrued in the account cannot be removed without a tax penalty before 59 and one half years of age. Under Section 307 of the Health Opportunity Patient Empowerment Act of 2006, it is possible to fund an HSA (health savings account) with a one time contribution from a traditional or Roth IRA. An HSA can be used to purchase a qualified long term care insurance plan. The amount considered a qualified medical expense is age dependent and would have to be monitored to ensure one didn't run afoul of rules governing HSAs.
  
  HSAs do roll over and it is possible to grow an HSA in the same manner as an IRA. If done early enough in one's career, the HSA could pay the premiums for the long term care insurance while being initially funded from an IRA.
  
  

Purchase an Annuity

• According to Bankrate.com, it might be possible to use an IRA to invest in an insurance annuity that covers long term care. George Saenz at Bankrate.com says "You need to verify that the insurer is selling you a permitted IRA investment and that the amount you roll over into the long-term care policy is a permitted investment and won't be treated as a distribution," because if it is not treated as investment it will considered a distribution, triggering taxes and penalties.
  
  

Why Long Term Care Doesn't Count

• The reason why long term care insurance doesn't count is because it is not an IRS-approved investment vehicle. Non-approved investments are considered distributions according to the IRS. This leaves long term care, a contract in which the consumer pays a premium in order to receive care in the event of illness requiring long term care, out of a mix that generally consists of interest-bearing or capital gains-bearing investments.
  
  

Use the Flexibility IRAs Offer

• In general, you cannot use an IRA early distribution to pay for long term care, but with careful planning one can create a frame work and perhaps even find a qualifying investment tool to get one around the early distribution challenge. Checking with the a financial planner or a tax accountant can help you take advantage of the flexibility of IRAs.