Thursday, June 16, 2005

Support your troops!

The IRS being unfair....again......

ALERT: On Memorial Day, we remembered our war veterans, who gave their all for this country, so we could be free.
But we also need to remember those that are putting their lives on the line right now in our armed forces -- and aren't allowed to invest ANY of their combat pay in individual retirement accounts.
You read that right. Right now, if one of our brave soldiers serving in a combat zone wants to invest his earned pay for retirement, the IRS says NO. Because combat pay is non-taxable income, current Internal Revenue Service code prevents such money from receiving any additional tax benefit from being invested in an IRA.
That means, for example, that if a soldier spent most of 2004 in Iraq, his combat pay was almost entirely untaxed, which reduced his ability to invest in his own retirement.
It's the RIGHT thing to do to make sure our soldiers' combat pay is untaxable -- but it's WRONG to then tell them that they can't invest any of that pay in their own retirement account. Thankfully, Congress agrees, and they're pushing through legislation to correct this unfair situation.
Rep. Virginia Foxx (R-NC) has introduced H.R. 1499, the "Heroes Earned Retirement Opportunities (HERO) Act," which seeks to change the tax code to allow soldiers earning hazard pay to be eligible for retirement account contributions.
The HERO Act would count hazard pay as taxable income for the purpose of IRA contributions while still keeping it tax-free for Internal Revenue Service purposes. The bill would allow soldiers to make the maximum yearly contribution to their retirement accounts, which increased this year to $3,500 for most taxpayers, though those over 50 can contribute more and still receive tax benefits.
THIS is the kind of common-sense legislation we need for our troops. If anyone has earned the opportunity to contribute to an IRA, it is these heroes.
TAKE ACTION: The HERO Act just passed the U.S. House of Representatives UNANIMOUSLY. It's now gone to the Senate... and WE need to make sure it doesn't get stuck in committee.
As Rep. Foxx stated, "The purpose of hazard pay is to reward soldiers for their service, just as one goal of our tax code should be to encourage savings. The HERO Act is a common-sense, fiscally responsible piece of legislation that will help our servicemen and women without costing taxpayers a penny."
Click below NOW to tell your Senators to pass H.R. 1499, the "Heroes Earned Retirement Opportunities (HERO)" Act:

NOTE: Be sure to forward this Alert to EVERYONE you know who wants to help support our troops in this common-sense way. Thank you!


William Greene,


At 8:18 PM, Blogger Johnjon said...

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