[United States Statutes at Large, Volume 120, 109th Congress, 2nd Session]
[From the U.S. Government Printing Office, www.gpo.gov]

120 STAT. 385

Public Law 109-227
109th Congress

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.  NOTE: May 29, 2006 -  [H.R. 1499]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress  NOTE: Heroes Earned Retirement
Opportunities Act.  assembled,

SECTION 1.  NOTE: 26 USC 1 note.  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  NOTE: 26 USC 219.  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)   NOTE: 26 USC 219 note.  Effective Date.--The amendments made
by this section shall apply to taxable years beginning after December
31, 2003.

(c)   NOTE: 26 USC 219 note.  Contributions for Taxable Years
Ending Before Enactment.--
(1) In general.--In the case of any taxpayer with respect to
whom compensation was excluded from gross income under section
112 of the Internal Revenue Code of 1986 for any taxable year
beginning after December 31, 2003, and ending before the date of
the enactment of this Act, any contribution to an individual
retirement plan made on account of such taxable year and not
later than the last day of the 3-year period beginning on the
date of the enactment of this Act shall be treated, for purposes
of such Code, as having been made on the last day of such
taxable year.
(2) Waiver of limitations.--
(A) Credit or refund.--If the credit or refund of
any overpayment of tax resulting from a contribution to
which paragraph (1) applies is prevented at any time by
the operation of any law or rule of law (including res
judicata), such credit or refund may nevertheless be
allowed

[[Page 386]]
120 STAT. 386

or made if the claim therefor is filed before the close
of the 1-year period beginning on the date that such
contribution is made (determined without regard to
paragraph (1)).
(B) Assessment of deficiency.--The period for
assessing a deficiency attributable to a contribution to
which paragraph (1) applies shall not expire before the
close of the 3-year period beginning on the date that
such contribution is made. Such deficiency may be
assessed before the expiration of such 3-year period
notwithstanding the provisions of any other law or rule
of law which would otherwise prevent such assessment.
(3) Individual retirement plan defined.--For purposes of
this subsection, the term ``individual retirement plan'' has the
meaning given such term by section 7701(a)(37) of such Code.

Approved May 29, 2006.

LEGISLATIVE HISTORY--H.R. 1499:
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CONGRESSIONAL RECORD:
Vol. 151 (2005):
May 23, considered and passed House.
Nov. 15, considered and passed
Senate, amended.
Vol. 152 (2006):
May 9, House concurred in Senate
amendement with an amendment
pursuant to H. Res. 803.
May 18, Senate concurred in House
amendment.