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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1499 Enrolled Bill (ENR)]

        H.R.1499

                       One Hundred Ninth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the third day of January, two thousand and six

                                 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 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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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