PUBLIC LAW 109–227—MAY 29, 2006 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.

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, 2003.

(c) 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

26 USC 219 note.

26 USC 219 note.

26 USC 219.

26 USC 1 note.

Heroes Earned

Retirement

Opportunities

Act.

May 29, 2006

[H.R. 1499]

120 STAT. 386 PUBLIC LAW 109–227—MAY 29, 2006

LEGISLATIVE HISTORY—H.R. 1499:

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.

Æ

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.