New Legislation Would Bolster Veteran’s Benefits
May 26, 2008
Congressman Phil English (R-PA) has introduced legislation that would bolster Social Security benefits for military service members, veterans and volunteer firefighters.
The Heroes Earnings Assistance and Relief Tax Act of 2008 would give family members full pension benefits when a service member dies while on active duty. The bipartisan measure also enables active service members to benefit from the earned income tax credit by allowing them to pair their non-taxable combat pay with their earned income, allows survivors to put military death benefits into Roth IRAs without limitation, and lets reservists take penalty-free withdrawals from 401(k) and IRA accounts.
Current pension law fails to provide guidance on the disposition of assets in an employer-sponsored retirement plan when a service member dies on active duty, said Rep. English, the ranking member of the Select Revenue Measures Subcommittee.
“If deployed, these men and women will be able to provide financial footing their families can depend on during their absence,” he said. The bill also expands Social Security Income benefits to aged, disabled and blind veterans.
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