Bush signs Foxx bill

Law lets service members put hazard pay into IRA, shields it from taxes

By Mary M. Shaffrey
JOURNAL WASHINGTON BUREAU

WASHINGTON

President Bush used the Memorial Day holiday to honor Americans serving in war zones by signing into law a bill that allows them to put their salaries into their individual retirement accounts.

The Heroes Earned Retirement Opportunities Act was sponsored by Rep. Virginia Foxx, R-5th. The new law, also known as the HERO Act, takes effect immediately. It changes a previous law that did not allow military personnel earning hazard pay to make contributions to their IRAs.

Kudos to Foxx for sponsoring this bill.