pay-taxes

Retired Public Safety Officer Health Premium Exclusion — Keep Up to $3,000 Out of Income

Difficulty Medium Risk Medium Applies To All Potential Savings Up to $3,000 of exclusion from taxable income each year Last Verified 2026-04-03

Retired Public Safety Officer Health Premium Exclusion — Keep Up to $3,000 Out of Income

What Is It?

Eligible retired public safety officers can exclude up to $3,000 of certain retirement-plan distributions used to pay qualifying health or long-term care premiums.

What Most People Don’t Know

  • The distribution must come from the employer plan of the employer you retired from as a public safety officer.
  • The exclusion can apply to premiums for the retiree, spouse, or dependents.
  • This is an exclusion from income, not a deduction.

Frequently Asked Questions

What is the cap?


A: IRS Publication 575 says you can exclude the smaller of the qualifying premium amount or $3,000.

Can the premiums be for a spouse or dependents too?


A: Yes. Publication 575 says the coverage can be for you, your spouse, or dependents.

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