In 2006, the Healthcare Enhancement for Local Public Safety (HELPS) Retirees Act allowed retired public safety officers to withdraw $3,000 tax free from their pension plan to pay health or long-term care insurance premiums. This required the pension plans to pay the $3,000 directly to the insurer.
Shortly before January 3, 2023, the law was changed - removing the requirement that pension fund distributions must go directly to the insurer to be eligible for tax-free status.
While preparing my 2023 taxes on TurboTax, it appears that the program has not recognized this change, and still maintains the requirement that the premiums be paid through the pension plan. Is TurboTax going to update based on the new law, and if not, what is the best work around?
