United StatesExtends deadline to deposit military death benefits into Roth IRAs and Coverdell accounts
Gives recipients of military death benefits more time to put those payments into tax-advantaged retirement or education accounts, affecting tax planning and family finances.
What it does
Extends the allowed window for depositing military death benefits into Roth IRAs from one year to three years by amending two Internal Revenue Code provisions.
Applies the same 3-year extension to Coverdell education savings account contributions tied to military death benefits.
Makes the amendments effective for amounts received on or after enactment, with a specific retroactive provision for amounts received between Oct 7, 2001 and enactment.
Argument forGives grieving survivors more time to make tax-advantaged choices, reducing pressure to act quickly after a death and helping preserve after-tax value of benefits.
Argument againstExtending the deposit window could reduce near-term federal tax receipts because more dollars may enter Roth IRAs or Coverdell accounts and avoid immediate taxation, though the amount is uncertain.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 25Introduced in HouseLatest
- Jun 25Referred to the House Committee on Ways and Means.Introduced
VeteransTaxes & BudgetConsumer Protection