Combat Troops to Get IRA Eligibility

On May 18, the Senate followed the House’s lead by approving HR-1499 to correct a glitch that prevented service members in combat zones from contributing to IRAs. Under current law, basic pay is exempt from federal income taxes for troops serving in a combat zone. With basic pay exempted, there is no taxable earned income, thus they are ineligible to make IRA contributions. The bill will correct that.