Thank you. The only issue that we have had with the LEO $3,000 exclusion from a pension is that at the start of tax season, TurboTax (Online and Desktop) still said that the payment had to go directly from the pension administrator to the health insurance company. This was incorrect, although the underlying code was correct and handled the $3,000 correctly.
NOTE: you had to have taxable pension income for the $3,000 to be deducted. If no taxable pension income, then the $3,000 is ignored (as it should be), because the wording of the Act is that the $3,000 is an exclusion but only from pension income, not the taxpayer's general income.
Because of the Secure Act 2.0, the wording on the screen in the 1099-R interview was changed. Hopefully, this closes the issue.
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