House Passes Military IRA Measure

The House on May 23, 2005, passed by voice vote the Heroes Earned Retirement Opportunities Bill (H.R. 1499). The bill would amend the Internal Revenue Code to allow service members who earn tax-free combat pay to treat the combat pay as taxable compensation for purposes of making contributions to an IRA or Roth IRA. The provision has an estimated ten-year cost of $31 million.