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H.E.R.O. Act helps troops save for their retirements

This morning, United States Rep. Virginia Foxx (R-N.C.-5) joined President Bush in the Oval Office as he signed the Heroes Earned Retirement Opportunities (or H.E.R.O.) Act into law. The bill, authored by Foxx, amends the IRS Code of 1986 to allow members of the Armed Forces earning hazard pay to make Individual Retirement Account contributions.

“Today, as we pay tribute to those who paid the ultimate sacrifice to preserve our freedoms, we must also keep in our hearts and minds those who are currently in harm’s way. It is very appropriate that the President signed the H.E.R.O. Act today because it demonstrates our ongoing commitment to our troops,” said Rep. Foxx. “This bill is a huge victory for our men and women in uniform. It is very rare for legislation to pass both chambers of Congress and make it to the President’s desk, especially when it is introduced by a freshman. I am humbled that we have made it this far and am delighted to have helped our soldiers save for their futures.”

Rep. Foxx introduced H.R. 1499 last year after being contacted by a constituent whose son 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 retirement because of a glitch in our tax code.”

“I want to thank Rep. Foxx for not only listening to a problem that many men and women in uniform face, but moving so quickly to introduce a bill to fix it,” said Spc. Michael Hensley. “On behalf of all soldiers, sailors, airmen and Marines, I thank Virginia Foxx for fighting on our behalf in the United States Congress.”

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.

Photo Caption: President Bush signs the Heroes Earned Retirement Opportunities (H.E.R.O.) Act on Monday in the White House. From left are, Sen. John Warner, R-Va., Senate Majority Leader Bill Frist of Tenn., and Rep. Virginia Foxx, R-N.C.

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