Heroes Earned Retirement Opportunities Act

The Heroes Earned Retirement Opportunities Act allows members of the U.S. Armed Forces to count tax-exempt combat pay as earned income when calculating how much they can contribute to individual retirement accounts (IRAs). Before this law, service members receiving tax-free pay in combat zones often could not contribute to these retirement plans because they technically had no "taxable" income to report. By making this change, the law ensures that military personnel serving in combat can still take full advantage of tax-advantaged retirement savings options.