H.R. 3327: Public Safety Retirees Healthcare Protection Act of 2025

This bill, titled the Public Safety Retirees Healthcare Protection Act of 2025, aims to amend the Internal Revenue Code to increase the tax exclusion for certain retirement distributions related to health care for public safety officers. Below are the key components of the bill:

Key Provisions

• Increase in Tax Exclusion: The bill proposes to raise the amount of money that can be excluded from gross income for distributions from government retirement plans specifically for health and long-term care insurance for public safety officers from $3,000 to $6,000.
• Public Safety Officers: This change applies to public safety officers, which generally includes police officers, firefighters, and emergency medical personnel.
• Effective Date: The new exclusion amount would apply to distributions made in taxable years beginning after December 31, 2025.

Purpose and Intent

The intent behind this legislation is to provide public safety retirees with increased financial support for their health care and long-term care needs. By allowing a higher exclusion amount, the bill aims to alleviate some of the financial burdens that may come with these necessary expenses.

Implications

By increasing the exclusion amount, retirees may have more funds available from their retirement distributions to cover health-related expenses without impacting their taxable income as significantly as before. This could potentially enhance their overall financial well-being and access to necessary health care.

Relevant Companies

• None found