Posted: December 26, 2022
Washington – Today, Rep. Mike Thompson (CA-05) announced his bipartisan legislation to amend the federal tax code in order to allow first responders the ability to access their retirement funds penalty free upon reaching their eligible retirement age was included in Congress’ end of year spending package.
"First responders, firefighters, and other public safety employees put their lives on the line every day to keep us safe," said Thompson. "Faced with this risk and increased stress, they deserve to be able to access their retirement savings the day they are eligible without penalty. Proud to have secured these changes which will go a long way in ensuring that first responders can retire with the peace of mind and financial security they deserve."
The tax code currently allows eligible first responders and public safety officers to withdraw from their retirement if they retire at or after the age of 50 due to the taxing nature of these jobs. However, federal officers are eligible for retirement prior to the age of 50 if they have completed 25 years of service. Under current law, when an officer retires prior to the age of 50 with 25 years of service, they are not allowed access to their retirement funds penalty free until the age of 59 ½, which is the age average Americans are able to withdraw from retirement accounts penalty free.