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Increased Tax Relief for Public Safety Retiree Health Insurance.

This act increases the amount retired public safety officers can exclude from their taxable income for health and long-term care insurance premiums. It also removes the direct payment requirement from the retirement plan to the insurer, simplifying the process. These changes aim to improve the financial well-being of retirees and ease access to healthcare benefits.
Key points
The tax-free amount for health insurance for retired public safety officers increases from $3,000 to $6,000 annually.
The requirement for direct payments from the retirement plan to the insurer for health insurance is eliminated, offering more flexibility.
These changes apply to distributions starting from January 1, 2022, with the direct payment repeal effective upon the act's enactment.
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Additional Information
Print number: 117_HR_7203
Sponsor: Rep. Chabot, Steve [R-OH-1]
Process start date: 2022-03-24