II 109th CONGRESS 1st Session S. 601 IN THE SENATE OF THE UNITED STATES March 10, 2005 Mr. Conrad introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to include combat pay in determining an allowable contribution to an individual retirement plan.

1.

Inclusion of combat pay in determining allowable IRA contributions

(a)

In general

The first sentence of section 219(f) of the Internal Revenue Code of 1986 (defining compensation) is amended by inserting and any amount excluded from gross income by reason of section 112 after section 401(c)(2)). (b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2003.