I 
109TH CONGRESS 
1ST SESSION H. R. 3478
To amend the Internal Revenue Code of 1986 to permit military death 
gratuities to be contributed to certain tax-favored accounts. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2005
Mr. JONES of North Carolina introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to permit 
military death gratuities to be contributed to certain 
tax-favored accounts.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CONTRIBUTIONS OF MILITARY DEATH GRATU-
ITIES TO CERTAIN TAX-FAVORED ACCOUNTS. 
(a) ROTH IRAS.—Subsection (e) of section 408A of 
the Internal Revenue Code of 1986 (relating to qualified 
rollover contribution) is amended to read as follows: 
‘‘(e) QUALIFIED ROLLOVER CONTRIBUTION.—For 
purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified rollover 
contribution’ means a rollover contribution to a Roth 
IRA from another such account, or from an indi-
vidual retirement plan, but only if such rollover con-
tribution 
meets 
the 
requirements 
of 
section 
408(d)(3). Such term includes a rollover contribu-
tion described in section 402A(c)(3)(A). For pur-
poses of section 408(d)(3)(B), there shall be dis-
regarded any qualified rollover contribution from an 
individual retirement plan (other than a Roth IRA) 
to a Roth IRA. 
‘‘(2) MILITARY DEATH GRATUITY.—
‘‘(A) IN
GENERAL.—The term ‘qualified 
rollover contribution’ includes a contribution to 
a Roth IRA maintained for the benefit of an in-
dividual to the extent that such contribution 
does not exceed the amount received by such in-
dividual under section 1477 of title 10, United 
States Code, or under section 1967 of title 38 
of such Code, if such contribution is made not 
later than 1 year after the day on which such 
individual receives such amount. 
‘‘(B) ANNUAL
LIMIT
ON
NUMBER
OF 
ROLLOVERS
NOT
TO
APPLY.—Section 
408(d)(3)(B) shall not apply with respect to
amounts treated as a rollover by the subpara-
graph (A). 
‘‘(C) APPLICATION OF SECTION 72.—For 
purposes of applying section 72 in the case of 
a distribution which is not a qualified distribu-
tion, the amount treated as a rollover by the 
subparagraph (A) shall be treated as invest-
ment in the contract.’’. 
(b) HEALTH
SAVINGS
ACCOUNTS
AND
ARCHER 
MSAS.—Sections 220(f)(5) and 223(f)(5) of such Code 
are both amended by adding at the end the following flush 
sentence: ‘‘For purposes of subparagraphs (A) and (B), 
rules similar to the rules of section 408A(e)(2) (relating 
to rollover treatment for contributions of military death 
gratuity) shall apply.’’. 
(c) 
EDUCATION
SAVINGS
ACCOUNTS.—Section 
530(d)(5) of such Code is amended by adding at the end 
the following new sentence: ‘‘For purposes of this para-
graph, rules similar to the rules of section 408A(e)(2) (re-
lating to rollover treatment for contributions of military 
death gratuity) shall apply.’’. 
(d) EFFECTIVE DATES.—
(1) IN GENERAL.—Except as provided by para-
graph (2), the amendments made by this section 
shall apply with respect to deaths from injuries oc-
curring on or after the date of the enactment of this 
Act. 
(2) APPLICATION OF AMENDMENTS TO DEATHS 
FROM INJURIES OCCURRING ON OR AFTER OCTOBER 
7, 2001, AND
BEFORE
ENACTMENT.—The amend-
ments made by this section shall apply to any con-
tribution made pursuant to section 408A(e)(2), 
220(f)(5), 223(f)(5), or 530(d)(5) of the Internal 
Revenue Code of 1986, as amended by this Act, with 
respect to amounts received under section 1477 of 
title 10, United States Code, or under section 1967 
of title 38 of such Code, for deaths from injuries oc-
curring on or after October 7, 2001, and before the 
date of the enactment of this Act if such contribu-
tion is made not later than 1 year after the date of 
the enactment of this Act.
Æ