Heroes Earned Retirement Opportunities Act
Courtesy American Forces Press Service
WASHINGTON, May 31, 2006 - An act signed into law May 29 by President Bush
solves a conflict in the tax code by allowing servicemembers who serve in a
combat zone to still contribute to their individual retirement accounts, a
Defense Department official said here today.
The Heroes Earned Retirement Opportunities Act amends the Internal Revenue
Code to allow servicemembers to include tax-exempt combat zone pay in
determining the allowable income tax deduction for contributions to retirement
savings plans.
The Heroes Act is retroactive for two years, so anyone who has served in a
combat zone in the past two years can fix tax problems or make contributions
they may have missed due to this problem, she said. These servicemembers have
three years to fix problems from the past, she said.