Retired Public Safety Officer Health Premium Exclusion — Keep Up to $3,000 Out of Income
What Is It?
Eligible retired public safety officers can exclude up to $3,000 of certain retirement-plan distributions used to pay qualifying health or long-term care premiums.
What Most People Don’t Know
- The distribution must come from the employer plan of the employer you retired from as a public safety officer.
- The exclusion can apply to premiums for the retiree, spouse, or dependents.
- This is an exclusion from income, not a deduction.
Frequently Asked Questions
What is the cap?
A: IRS Publication 575 says you can exclude the smaller of the qualifying premium amount or $3,000.
Can the premiums be for a spouse or dependents too?
A: Yes. Publication 575 says the coverage can be for you, your spouse, or dependents.