What: Insurance premium payments made by qualified public safety officers no longer need to be paid directly from the retirement plan to qualify for the tax exemption.
Key Dates: Effective for distributions after 12/29/2022
Impacted Audiences: Qualified public safety officers with a 401(a) defined contribution plan, 401(a) defined benefit plan and/or 457(b) plan (other plan types outside those offered by MERS may be affected by this change)
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Public Safety Officer Health Insurance
Previous law provided the opportunity for public safety officers to exclude $3,000 from gross income for a direct payment for health insurance premiums from a governmental retirement plan. With SECURE 2.0, insurance premium payments no longer need to be paid directly from the retirement plan to qualify for the tax
This change is effective for distributions after 12/29/2022 and makes it easier for public safety offers to utilize this provision.
More information: MERS SECURE 2.0 Resource Page