[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1499 Referred in Senate (RFS)]

  1st Session
                                H. R. 1499


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                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2005

     Received; read twice and referred to the Committee on Finance

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                                 AN ACT


 
  To amend the Internal Revenue Code of 1986 to allow members of the 
 Armed Forces serving in a combat zone to make contributions to their 
  individual retirement plans even if the compensation on which such 
  contribution is based is excluded from gross income, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Heroes Earned Retirement 
Opportunities Act''.

SEC. 2. COMBAT ZONE COMPENSATION TAKEN INTO ACCOUNT FOR PURPOSES OF 
              DETERMINING LIMITATION AND DEDUCTIBILITY OF CONTRIBUTIONS 
              TO INDIVIDUAL RETIREMENT PLANS.

    (a) In General.--Subsection (f) of section 219 of the Internal 
Revenue Code of 1986 is amended by redesignating paragraph (7) as 
paragraph (8) and by inserting after paragraph (6) the following new 
paragraph:
            ``(7) Special rule for compensation earned by members of 
        the armed forces for service in a combat zone.--For purposes of 
        subsections (b)(1)(B) and (c), the amount of compensation 
        includible in an individual's gross income shall be determined 
        without regard to section 112.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

            Passed the House of Representatives May 23, 2005.

            Attest:

                                                 JEFF TRANDAHL,

                                                                 Clerk.