Exclusion of Certain Disability-Related First-Responder Disability Payments
SECURE 2.0 Act Section 309 amends IRC Sec 139 to permit qualified first responders to exclude service connected disability pension payments from gross income after reaching retirement age. The term ‘qualified first responder retirement payments’ means, with respect to any taxable year, any pension or annuity which but for this section would be includible in gross income for such taxable year which is received—
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From a plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B), and
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In connection with such individual’s qualified first responder service.
Effective Date: tax years beginning after December 31, 2026.