what is the heroes earned retirement opportunities hero act 
the heroes earned retirement opportunities hero act is a 2006 law that allows military personnel to fund their individual retirement accounts iras with combat pay it is a tax break designed for those who have served in combat zones under the law combat related compensation paid since january 2004 which is tax free can be used to fund iras understanding the hero actprevious to the act s passage military personnel whose main source of compensation was combat pay would not be able to contribute to an ira either traditional or roth iras this was because combat pay is not ordinarily taxable and only income that is taxable can be contributed to an ira if a person s entire income was earned in a combat zone that person had zero taxable income the act passed on may 18 2006 fixed this catch 22 and backdated the change to january 2004 for those affected now military personnel can create an ira and fund it with combat pay up to the annual limits set by the irs for 2022 the limit is 6 000 per year rising to 6 500 for 2023 people age 50 and over can add another 1 000 a year as a catch up contribution according to the internal revenue service irs to qualify for combat related tax benefits you must be an eligible member who meets one of the following options with service in a recognized area if you receive combat pay as a military member you can now fund an ira up to 6 000 a year in 2022 and up to 6 500 in 2023 if you are under age 50 with that income special considerationswith the passage of this law combat veterans can create either a traditional ira or roth ira account and contribute up to the annual limit military personnel can also create both types of accounts and split the money up assuming they meet income and contribution requirements for roth iras with a traditional ira no taxes are due until the account holder makes a withdrawal presumably after retiring with a roth ira the income taxes on the amount paid are due in that tax year but the proceeds are tax free down the road 