Public Safety Retirees Healthcare Protection Act of 2023
Source: Congress.gov ·
290 words in original text
What This Bill Does
This bill increases the amount of money that public safety officers can exclude from their taxable income when they withdraw funds from government retirement plans to pay for health insurance and long-term care insurance (insurance that covers expenses for people who cannot care for themselves). The bill changes the dollar limit for this tax break.
Who It Affects
Public safety officers who receive distributions from governmental retirement plans for health and long-term care insurance.
Key Provisions
• The excluded amount increases from $3,000 to $6,000 per year (Sec. 2(a))
What Changes
Public safety officers can now exclude twice as much money from their income taxes when they use retirement plan distributions to pay for health and long-term care insurance. This means they will owe less in federal income taxes on these distributions.
Important Definitions
Distributions: payments of money from a retirement plan
Gross income: the total income a person earns before deductions or taxes
Excluded from gross income: money that does not count as taxable income
Effective Date
This change applies to distributions in taxable years beginning after December 31, 2023.
Important: This plain English summary was generated by AI and is provided for informational purposes only.
It is not legal advice. Always consult the official bill text on Congress.gov
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