Health Care Tax Credit For Public Safety Officers

Employees’ share of medical costs tripled over a 10-year period, from $1,229 in 2001 to $4,386 in 20111

PPA allows you to pay up to $3,000 a year in qualified health premiums with distributions from deferred comp and exclude this amount from your federal income taxes.

Eligible retired public safety officers are entitled to elect a portion of their qualified health and/or long-term care insurance premiums deducted on a pre-tax basis from their Defined Contribution Plan and paid directly to their insurance company. The annual, aggregate maximum is $3,000. At the end of the tax year, a Form 1099-R is provided to the public safety officer, showing a taxable distribution. The public safety officer should work with their tax preparer in order to properly complete their income tax return to avoid being taxed on the premiums. Nationwide Retirement Solutions cannot provide tax advice.

Please visit the Special Provisions Brochure for additional resources.

To apply for the withdrawal, complete the PPA Premiums for Public Safety Officers Form.

1"Trends in HR and Employee Benefits — Health Care Cost Trends," Aon Hewitt, November 2010.

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