Protecting Public Safety Employees' Timely Retirement Act of 2022

The Protecting Public Safety Employees' Timely Retirement Act of 2022 aims to provide greater financial flexibility for law enforcement officers, firefighters, and emergency medical services personnel when they retire. Under current law, these public safety employees can generally withdraw funds from their government retirement plans without paying a 10% early-withdrawal penalty only if they have reached age 50. This bill would expand that exemption to include employees who have completed 25 years of service, even if they have not yet reached age 50.

For eligible first responders, this change would allow those who began their careers early to access their earned retirement savings sooner without facing federal tax penalties. By aligning tax rules with the common "25-and-out" retirement structures used by many departments, the bill seeks to ensure that public safety workers are not financially penalized for retiring after a full career of service.