Incorrect Income Exclusion for Public Safety Officer Insurance Premiums
Updated: 8/03/2012
Article ID: SLN61930
There is an issue with the amount of income exclusion allowed for distributions used to pay insurance premiums may be calculated incorrectly.
The maximum amount of Retired Public Safety Officer insurance premiums, that may be excluded from income for distributions is $3,000.
If more than $3,000 of insurance premiums are entered for a single distribution, the income exclusion will be calculated correctly.
If more than $3,000 of insurance premiums are entered for multiple distributions, the amount allowed for income exclusion may be overstated.
Who Is Affected?
If you meet all of the following you may be affected by this issue.
- Retired Public Safety Officer.
- Had more than one CS A-1099-R distribution used to pay health insurance premiums.
- The combined amount paid for health insurance premiums is greater than $3,000.
Workaround:
Enter the combined amount used to pay health insurance from the distributions in a single entry.
