Heroes Earned Retirement Opportunities Act
PL 109-227 (H.R.1499), enacted 05/29/2006

120 STAT. 385
PUBLIC LAW 109–227—MAY 29, 2006
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 retire-
ment 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 DEDUCT-
IBILITY OF CONTRIBUTIONS TO INDIVIDUAL RETIRE-
MENT 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 fol-
lowing 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 com-
pensation 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 ENACT-
MENT.—
(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]
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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.
or made if the claim therefor is filed before the close
of the 1-year period beginning on the date that such con-
tribution 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.
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