Doubling Tax Exclusion for Public Safety Retirees' Health Insurance Costs.
This bill doubles the amount of money that retired public safety officers (like police and firefighters) can use from their governmental retirement plans to pay for health or long-term care insurance premiums without paying income tax on that amount. The annual tax exclusion increases from $3,000 to $6,000, providing significant financial relief and increasing disposable income for these retirees. The change takes effect starting in the 2024 tax year.
Key points
The maximum tax-free amount retired public safety officers can use for health insurance premiums increases from $3,000 to $6,000 annually.
This change applies to distributions from governmental retirement plans for eligible public safety retirees.
The increased tax savings will take effect for distributions starting in the tax year 2024.
Expired
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