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$3,000 Tax Free Withdrawal for Special Risk Retirees

Each year special risk retirees can withdrawal up to $3,000 to be paid directly to your insurance carrier for premiums, this $3,000 will not be federally taxed. If you normally pay 20% in income tax this would save up to $600 each year in tax payments!

To Qualify:

  • Be a fully retired eligible public safety officer

    o LawEnforcement
    o Firefighter
    o Member of rescue squad or ambulance crew or corrections
    o Border/Customsofficer

  • Separate from service after reaching normal retirement age (Usually age 55 or 25 years of svc)

  • Distribu9on must come from eligible plan (401(a), 403(b), 457(b))

Paid directly to Health Insurance company (Request form from eligible Re9rement plan(457))

 

 

 
 
Information provided should not be considered as tax advice from GWN Securities, Inc. or it's representatives. Please consult with your tax professional.

Source: Section 402(l), Internal Revenue Code 1, provides a tax exclusion of up to $3,000 for accident, health insurance or tax qualified long term care insurance to eligible public safety officer retirees. A public safety officer is an individual who served at a public agency in an official capacity, with or without compensation, as a law enforcement officer, firefighter, chaplain, or as a member of a rescue squad or ambulance crew as defined under section 1204(9)(A) of the Omnibus Crime Control and Safe Streets Act of 1986.