Title: HELPS Retirees Improvement Act of 2022
Policy area: Taxation

Summary:
Wally Bunker Healthcare Enhancement for Local Public Safety Retirees Improvement Act of 2022 or the HELPS Retirees Improvement Act of 2022
This bill increases from $3,000 to $6,000 the amount of the exclusion from gross income of distributions from a tax-exempt retirement plan for health and long-term care insurance for public safety officers. It also eliminates the requirement that insurance premiums must be paid directly to the provider of the accident or health plan or long-term care insurance contract as a condition of eligibility for the tax exclusion.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7203 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 7203

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, and for 
                            other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 24, 2022

 Mr. Chabot (for himself and Ms. Spanberger) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 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, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wally Bunker Healthcare Enhancement 
for Local Public Safety Retirees Improvement Act of 2022'' or the 
``HELPS Retirees Improvement Act of 2022''.

SEC. 2. INCREASE IN AMOUNT EXCLUDED FROM GROSS INCOME BY REASON OF 
              DISTRIBUTIONS FROM GOVERNMENTAL RETIREMENT PLANS FOR 
              HEALTH AND LONG-TERM CARE INSURANCE FOR PUBLIC SAFETY 
              OFFICERS.

    (a) In General.--Paragraph (2) of section 402(l) of the Internal 
Revenue Code of 1986 is amended by striking ``$3,000'' and inserting 
``$6,000''.
    (b) Effective Date.--The amendment made by paragraph (1) shall 
apply to distributions in taxable years beginning after December 31, 
2021.

SEC. 3. REPEAL OF DIRECT PAYMENT REQUIREMENT ON EXCLUSION FROM GROSS 
              INCOME OF DISTRIBUTIONS FROM GOVERNMENTAL PLANS FOR 
              HEALTH AND LONG-TERM CARE INSURANCE.

    (a) In General.--Section 402(l)(5) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(5) Aggregation rule.--For purposes of this subsection, 
        all eligible retirement plans of an employer shall be treated 
        as a single plan.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.
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