As a public safety worker, you likely face some unique challenges. So when planning your finances, you should know about some unique opportunities that may be available.
The benefit is available through the Department of Housing and Urban Development's Good Neighbor Next Door Program. A limited number of homes are available. You don't have to be a first-time home buyer to qualify, but at the time you submit your purchase offer, you cannot own another home or have owned one in the last year.
To learn more, including eligibility rules and restrictions, visit HUD's website.
To qualify, you must be an employee of a state or political subdivision of a state (such as a city or county) who provides police protection, firefighting services, or emergency medical services for any area within that jurisdiction. Also eligible: federal law enforcement officers, customs and border protection officers, firefighters and air traffic controllers.
To learn more, view IRS Publication 575.
Of course, just because you can take "early" withdrawals, doesn't mean you should. You'll still be subject to ordinary income taxes and you may need your assets to last a long retirement. Aim for balance — taking care of high priority needs and wants, with an eye to the future.
Depending on your situation, this rule could save you hundreds of dollars in yearly federal, and possibly state and local, taxes.
To be eligible:
To learn more: view IRS Publication 575.
- Your employer must have adopted the provision under the plan's rules.
- You must have left your employer as a public safety employee (law enforcement officers, firefighters, member of rescue squad or ambulance crew, or chaplain of fire or police department) due to attaining normal retirement age, as defined by your retirement plan, or disability.
- The insurance premiums — which can be for policies covering you, your spouse and/or your dependents — must be paid directly from the retirement plan to the insurer.
Each benefit available to you is likely to have some pluses and minuses. Knowing your options though is a good first step. Your MissionSquare Retirement representative can point you in the right direction.