I've searched through the forum and didn't see this exact scenario, so I am posting the question here.
I retired in 2006 after 25 years of public safety (law enforcement) service in Florida and have not been re-employed. This is the normal length of service for special risk (generally police and fire). I have limited investment control over the money (it is still in the state retirement plan) that the state paid into the retirement account vs the normal pension plan. None of it has been taxed. My rub is that I was 46 when I retired, so I've been paying the 10% penalty since my financial needs vary and I never set up a 72T type plan.
Of late, I've been reading about some IRS rules that changed in 2006 not requiring public safety workers to pay the penalty so long as they had a normal retirement, which is defined as age 50. My tax software mirrored this. My question is if my situation constitutes a normal retirement so I don't have to pay the penalty. I'm planning on contacting a tax firm such as HR Block and/or the IRS to get an answer.
I'm looking for anyone that may have experience in this area- I can't be the first one to do this.
Thanks for any help or advice.
I retired in 2006 after 25 years of public safety (law enforcement) service in Florida and have not been re-employed. This is the normal length of service for special risk (generally police and fire). I have limited investment control over the money (it is still in the state retirement plan) that the state paid into the retirement account vs the normal pension plan. None of it has been taxed. My rub is that I was 46 when I retired, so I've been paying the 10% penalty since my financial needs vary and I never set up a 72T type plan.
Of late, I've been reading about some IRS rules that changed in 2006 not requiring public safety workers to pay the penalty so long as they had a normal retirement, which is defined as age 50. My tax software mirrored this. My question is if my situation constitutes a normal retirement so I don't have to pay the penalty. I'm planning on contacting a tax firm such as HR Block and/or the IRS to get an answer.
I'm looking for anyone that may have experience in this area- I can't be the first one to do this.
Thanks for any help or advice.