DROP Deferred Retirement Option Plan

[c130condon]

I took a distribution from a 457 DROP Deferred Retirement Option Plan as a retired Police Officer (age 57). Under --Wages / T.T. is asking me if this applies: "Separation from Service the year during or after age 50 if a public safety employee."  Yes, but do I enter the entire distribution amount?  It was not used as a rollover, etc.  Thanks Mike

[ColeenD3]

Yes, you get a special benefit by claiming this.

For taxation purposes, a Public Safety Officer (PSO) is defined as: "an individual serving a public agency in an official capacity, with or without compensation, as a law enforcement officer, as a firefighter, as a chaplain, or as a member of a rescue squad or ambulance crew."

FEMA employees as well as certain public employees working with FEMA are also considered PSOs. Similar positions in the non-public sector (for example, security guard, trauma doctor or nurse, lifeguard) aren't considered PSOs.

Retired PSOs can exclude up to $3,000 of their retirement income, if the money was used towards health or long-term care insurance premiums.