Several Federal Income Tax benefits available to public safety personnel.
1. Pension Protection Act of 2006, P.L. 109-280, Section 828:
Waiver of the 10% Early Withdrawal Penalty Tax on Distributions of Pension Plans
In general this covers all uniformed municipal or state [Federal was included in legislation last year] public safety officer - police, firefighter, EMT.
Age 50 instead of age 65 is the age at which there is no longer a 10% penalty for early withdrawals.
2. Pension Protection Act of 2006, P.L. 109-280, Section 845 Extended through 2016
Distributions from Government Retirement Plans for Health and L/T Care Insurance Premiums
Eligible retired public safety officers may exclude up to $3,000 for qualified health insurance premiums paid per year - requirement: premiums must be paid by the retirement plan directly to the insurance provider.
IRS Reference: http://www.irs.gov/publications/p575/ar02.html#en_US_2011_publink1000226714
+++>>> NOTE: Various states may have additional tax benefits at the state level.
If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67
NOT INTUIT EMPLOYEE
USAR 64-67 AIS/ASA MOS 9301 - O3
- Just donating my time
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