This bill doubles the tax-free amount that retired public safety officers—including police, firefighters, and emergency personnel—can withdraw from their government retirement plans specifically to pay for health insurance and long-term care insurance. Currently, retirees can exclude $3,000 per year from their taxable income for these withdrawals; the bill increases that limit to $6,000 starting in 2026. The change provides tax relief for public safety retirees who are responsible for their own health coverage costs and helps make healthcare more affordable for this group during retirement. The bill requires no new federal spending and instead reduces tax obligations for eligible retirees.
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