The Hero Act

THE HERO ACT -- (House of Representatives - May 09, 2006)

(Ms. FOXX asked and was given permission to address the House for 1 minute and to revise and extend her remarks.)

Ms. FOXX. Mr. Speaker, I rise today in strong support of H.R. 1499, the Heroes Earned Retirement Opportunities Act. I introduced this bill after learning our current Tax Code prohibits many of our men and women serving in combat zones from taking advantage of individual retirement accounts.

Most of our troops serving in these combat zones are paid in wages designated as military hazard pay. These wages are not taxed, nor should they be. However, since this compensation is nontaxable, the wages are not eligible for IRA contributions. IRAs are an excellent tool for responsible retirement savings.

Our troops defending America in harm's way should not be excluded from full participation in this important investment opportunity because of a glitch in our Tax Code.

The HERO Act will correct this glitch by designating combat hazard pay earned by members of the Armed Forces as eligible for contribution to retirement accounts. This bill has been endorsed by the Reserve Officers Association and the MOAA.

I encourage my colleagues to support this important bill this afternoon and give our troops the opportunity they deserve to save for their future.

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