Important Information Regarding Tax Free Deductions From Retiree Plans For Health Care Payments{0}
DPLSA Update, Information regarding 3000 dollar tax free from an Individuals retirement plans to used by retirees for health care payments. During the DPLSA Board of Directors Meeting Wednesday, February 3, 2015, I Informed the Board of Directors of the information regarding HELPS. I am working on obtaining further information regarding this benefit along with other benefits that will assist active and retirees and I will be forwarding them to you. Through the National Association of Police Organization and our local efforts we are working on improvements and options.
Here is the preliminary information for HELPS, I plan on forwarding you further updates!
DPLSA
What is HELPS?
Health Care Enhancements for Local Public Safety Officers
HELPS is a new retiree health care benefit that provides a tax-free distribution of
up to $3,000 from retirement plans to help retirees pay for health insurance or
long-term care insurance. The funds can be for coverage for the retiree, spouse
or dependents. The distribution must be made directly from the retirement plan to
the insurance provider.
Why should I take the time to get this benefit?
A large number of retired fire fighters have to pay for their health insurance. As
an active employee, they were able to pay their premiums or health care costs
with pre-tax dollars. HELPS extends this pre-tax benefit into retirement (for up to
$3,000). It could be an annual tax savings of around $750.
Who is eligible for HELPS?
If you are a retired fire fighter, law enforcement officer, chaplain, or member of a
rescue squad or ambulance crew, you are eligible for HELPS.
Is my plan eligible for this?
Eligible retirement plans include qualified defined benefit pension plans, section
403(a) plans, section 403(b) annuities and section 457(b) deferred compensation
plans.
How do I get started? What exactly happens with the money?
If you are a retired public safety officer, you can contact your retirement plan
administrator, who will set up a transfer to send the funds directly to the health
plan. You can use the sample 1040 form found at www.iaff.org/helps to report
this tax break. The IAFF advises members to consult with their retirement plan
administrator and accountant or tax preparer to ensure the proper execution and
reporting to the IRS of the HELPS benefit.
What if my retirement plan doesn’t want to participate in HELPS?
Retirement systems do not have to make any formal decision to participate or not
participate in HELPS. They do, however, have to agree to send payments
directly to your health insurance provider in order for you to take advantage of
the HELPS tax deduction. As long as you receive a statement from your
retirement plan stating how much money went directly to your health insurance
provider, you are eligible for the tax deduction.
Where can I find more information?
If you have more questions, visit www.iaff.org/helps or consult a tax accountant.
You can also visit the National Conference on Public Employee Retirement
Systems website at www.ncpers.org, which provides further information on the
benefit.