Section 1 Short title
This Act may be cited as the “Police and Fire Health Care Protection Act of 2022”.
Police and Fire Health Care Protection Act of 2022
A BILL
To amend the Internal Revenue Code of 1986 to repeal the direct payment requirement on the exclusion from gross income of distributions from governmental plans for health and long-term care insurance.
Sec. 2 Repeal of direct payment requirement on exclusion from gross income of distributions from governmental plans for health and long-term care insurance
In general— Section 402(l)(5)(A) of the Internal Revenue Code of 1986 is amended to read as follows:
“(A) Direct payment to insurer permitted
“(i) In general—Paragraph (1) shall apply to a distribution without regard to whether payment of the premiums is made directly to the provider of the accident or health plan or qualified long-term care insurance contract by deduction from a distribution from the eligible retirement plan, or is made to the employee.
“(ii) Reporting—In the case of a payment made to the employee as described in clause (i), the employee shall include with the return of tax for the taxable year in which the distribution is made an attestation that the distribution does not exceed the amount paid by the employee for qualified health insurance premiums for such taxable year.”
Effective date— The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.