Question:
Am I considered a Public Safety Employee?

Answer:
Normally, an early withdrawal penalty of 10% is assessed by the Internal Revenue Service (IRS) for 401(k) account distributions taken prior to age 59½, unless you qualify for an exemption. One such exemption is for Public Safety Employees (PSEs) who separate from employment and take a distribution from their 401(k) account at age 50 or older. To see if you qualify as a PSE, ask your employer or visit IRS.gov/IRB/2007-05_IRB, Section 828 of PPA ’06, wherein it states, “For purposes of § 72(t)(10), the term ‘qualified public safety employee’ means an employee of a State or of a political subdivision of a State (such as a county or city) whose principal duties include services requiring specialized training in the area of police protection, firefighting services, or emergency medical services for any area within the jurisdiction of the State or the political subdivision of the State.” The definition of PSE was expanded with the passage of SECURE Act 2.0 on Dec. 29, 2022, and now includes corrections officers and forensic security employees who provide for the care, custody, and control of forensic patients, and includes private sector firefighters.

Neither the Michigan Office of Retirement Services nor Voya Financial® determine whether you qualify as a PSE, so the 1099-R you receive after a plan distribution will not reflect a PSE status. If you believe you qualify, you should inquire with your employer and seek assistance from your tax advisor.