When the taxpayer is an eligible "retired public safety officer", defined by the IRS as a "law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew", they can elect to exclude up to $3,000 of the distributions they receive from an eligible retirement plan from their taxable income. To be eligible for this exclusion, the funds must be used to pay for accident or health insurance premiums or the premiums associated with a long-term care contract for the taxpayer, their spouse, or their dependents.
To claim this deduction, make sure that you don't check the box stating that this is an IRA. It's not, it's a pension distribution. In the questions regarding the 1099R, the program will ask if your husband was a police officer and if you say Yes, it will ask questions about the Health insurance premium and if it was deducted from the taxable distribution. if so, you will receive up to a $3000 adjustment lowering your taxable distribution.
Lastly, this is a retirement distribution and since he is of retirement age. The distributions are taxable distributions.
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