Bill Introduced to Extend Time Period for Contributing Military Death Benefits to Roth IRA or ESA

Senators Richard Blumenthal (D-CT) and Tim Sheehy (R-MT) have introduced S. 5445, the GRACE for Military Survivors Act. The bill would allow beneficiaries who receive a military death gratuity or payment from Servicemembers Group Life Insurance to be contributed to a Roth IRA or Education Savings Account by the later of a three-year period following the date such amounts were received, or one year following enactment of the legislation. Currently under the HEART Act, these amounts must be contributed within one year of the date that the beneficiary receives the payment.