Sec. 139C Certain disability-related first responder retirement payments
Caution: Code section 139C, as added by P.L. 117-328, is effective for amounts received with respect to tax years beginning after December 31, 2026.
(a) In general. In the case of an individual who receives qualified first responder retirement payments for any taxable year, gross income shall not include so much of such payments as do not exceed the annualized excludable disability amount with respect to such individual.
(b) Qualified first responder retirement payments. For purposes of this section, 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 and which is received —
(1) from a plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B), and
(2) in connection with such individual's qualified first responder service.
(c) Annualized excludable disability amount. For purposes of this section —
(1) In general. The term "annualized excludable disability amount" means, with respect to any individual, the service-connected excludable disability amounts which are properly attributable to the 12-month period immediately preceding the date on which such individual attains retirement age.
(2) Service-connected excludable disability amount. The term "service-connected excludable disability amount" means periodic payments received by an individual which —
(A) are not includible in such individual's gross income under section 104(a)(1),
(B) are received in connection with such individual's qualified first responder service, and
(C) terminate when such individual attains retirement age.
(3) Special rule for partial-year payments. In the case of an individual who only receives service-connected excludable disability amounts properly attributable to a portion of the 12month period described in paragraph (1), such paragraph shall be applied by multiplying such amounts by the ratio of 365 to the number of days in such period to which such amounts were properly attributable.
(d) Qualified first responder service. For purposes of this section, the term "qualified first responder service" means service as a law enforcement officer, firefighter, paramedic, or emergency medical technician.
