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FOXX BILL PASSES SENATE, WILL GO TO PRESIDENT FOR SIGNATURE
Washington, DC,
May 19, 2006
The United States Senate has passed H.R. 1499, the Heroes Earned Retirement Opportunities (or H.E.R.O.) Act. The bill, introduced by U.S. Rep. Virginia Foxx (N.C.-5), will amend the IRS Code of 1986 to allow members of the Armed Forces earni
FOR IMMEDIATE RELEASE H.E.R.O. Act to allow soldiers earning hazard pay to make IRA contributions The United States Senate has passed H.R. 1499, the Heroes Earned Retirement Opportunities (or H.E.R.O.) Act. The bill, introduced by U.S. Rep. Virginia Foxx (N.C.-5), will amend the IRS Code of 1986 to allow members of the Armed Forces earning hazard pay to make Individual Retirement Account contributions. Earlier this month, the House passed an improved version of the bill (H. Res. 803), also authored by Foxx, to allow combat pay earned in 2004 and 2005 to also be eligible for IRA contributions. “This is a huge victory for our troops fighting overseas,” said Rep. Foxx. “I am delighted that we have cleared the final legislative hurdle on this bill to greatly help our men and women in uniform save for their retirements. I am looking forward to seeing President Bush sign this into law.” Rep. Foxx introduced H.R. 1499 last year after being contacted by the father of a soldier who spent most of 2004 in Iraq. The father, from Clemmons, N.C., was frustrated because his son did not earn enough taxable income to take full advantage of Individual Retirement Accounts. According to the current tax code, combat “hazard pay” is not considered taxable income. This is an important benefit for members of the Armed Forces who risk their lives to protect our freedom. Unfortunately, at the same time, it penalizes our heroes when it comes to contributions to their IRAs. “If anyone has earned the opportunity to save for their retirement, it is our military heroes who risk their lives daily to protect our freedoms,” said Rep. Foxx. “Our men and women in uniform should not be excluded from saving for their retirements because of a glitch in our tax code.” The H.E.R.O. Act was well received in Washington, both in and out of Congress. Forty-seven Members of Congress co-sponsored the bill. In addition, the Military Officers Association of America and the Reserve Officers Association endorsed the legislation. The H.E.R.O. Act was the first policy-changing bill passed by a freshman Member of the House this session. ### |