The Heroes Earned Retirement Opportunities Act has passed through Congress and is expected to be signed into law by President Bush. The bill would allow excluded combat pay to be treated as compensation under IRA contribution rules.

Barring certain circumstances, individuals or spouses who aren't participating in certain employer-sponsored retirement plans can make annual cash contributions to an IRA -- up to the lesser of either a set dollar limit ($4,000 in 2006, or, $5,000 for those 50 or older), or their gross income for that year.

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