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The Heroes Earned Retirement Opportunities (HERO) Act of 2016 provides a special exemption to military personnel who are on active duty, allowing them to use their combat pay to make Roth and traditional IRA contributions. Combat pay is tax-free, earnings generally received by military personnel for serving in a military combat zone or hazardous duty area outside of the United States or its possessions. The HERO Act allows this special group of military members to use their tax-free earnings to fund their retirement accounts rather than being limited to only making contributions from their earned taxable income.
The HERO Act is a great benefit for those whose combat pay is their only income. These service members become eligible to fund an IRA so they can take advantage of the tax advantages associated with the accounts. The IRA contributions become contributions to the retirement account, and the associated tax advantages are still realized. For example, if a soldier elects to contribute to a traditional IRA, funds can be withdrawn tax-free after retirement.
In addition to allowing individuals to use their combat pay to open an IRA, the HERO Act also offers them more flexibility in terms of how they are able to use their funds. For example, individuals are now able to pay for qualified educational expenses from their IRA. This enables service members to use some of their IRA funds to help pay for their education and invest the rest for retirement purposes.
The HERO Act is an excellent benefit that allows military service personnel to use their combat pay for retirement accounts and to pay for educational expenses. This helps ensure that those on active duty are able to save for their future and make investments in their education. With the retirement contribution limits increasing each year, the HERO Act makes it possible for retired military personnel to continue accumulating funds for retirement without having to pay taxes on their combat pay. This is a great benefit that demonstrates the appreciation and commitment that the government has to our nation’s military personnel.
The HERO Act is a great benefit for those whose combat pay is their only income. These service members become eligible to fund an IRA so they can take advantage of the tax advantages associated with the accounts. The IRA contributions become contributions to the retirement account, and the associated tax advantages are still realized. For example, if a soldier elects to contribute to a traditional IRA, funds can be withdrawn tax-free after retirement.
In addition to allowing individuals to use their combat pay to open an IRA, the HERO Act also offers them more flexibility in terms of how they are able to use their funds. For example, individuals are now able to pay for qualified educational expenses from their IRA. This enables service members to use some of their IRA funds to help pay for their education and invest the rest for retirement purposes.
The HERO Act is an excellent benefit that allows military service personnel to use their combat pay for retirement accounts and to pay for educational expenses. This helps ensure that those on active duty are able to save for their future and make investments in their education. With the retirement contribution limits increasing each year, the HERO Act makes it possible for retired military personnel to continue accumulating funds for retirement without having to pay taxes on their combat pay. This is a great benefit that demonstrates the appreciation and commitment that the government has to our nation’s military personnel.