If you are a retired Public Safety Officer (such as a Law Enforcement Officer, Firefighter, Chaplain or member of a rescue squad or ambulance crew), you may elect to exclude the premiums for accident/health insurance or long-term care insurance from your eligible retirement distributions.
- The premiums paid can be for coverage for yourself, your spouse, or your dependents.
- The distribution must be made directly from the plan to the insurance provider.
- Exclude the smaller of the insurance premiums or $3000.
- Only amounts that would otherwise be included in your income qualify for the exclusion.
- Any amount excluded cannot be used to claim a medical expense deduction.
An eligible retirement plan is a governmental plan that is:
- a qualified trust,
- a section 403(a) plan,
- a section 403(b) annuity, or
- a section 457(b) plan.
To make the exclusion in your account, go to:
- Federal Section
- IRA/Pension Distributions Form 1099-R
- Add or Edit a 1099-R. Enter the information for your distribution. For Box 2a, select 'Click here for options'. Choose Public Safety Officers Distribution and enter the smaller of the amount of premiums or $3,000. PSO will be displayed in the left margin of the 1040 form.