Panels meet over troop tax breaks

[unhappycamper]

Panels meet over troop tax breaks
By William H. McMichael - Staff writer
Posted : Wednesday Oct 17, 2007 16:07:37 EDT

Several key financial benefits enjoyed by service members on active duty, such as the ability to make penalty-free withdrawals from retirement plans, are set to expire at the end of the year.

Two House subcommittees met Wednesday to consider whether to make those benefits permanent and to set into law other tax-related measures, some of which would benefit military families who lose a service member in the wars in Iraq and Afghanistan.

One such provision would allow recipients of military death benefit payments to roll over the money, tax-free, to a Roth individual retirement account or an Education Savings Account.

Judging from legislators’ comments at the hearing, the proposals, like those being considered separately to improve and streamline veterans’ disability benefits, appear to have strong bipartisan backing.

“The brave men and women serving in our armed forces deserve nothing less than our respect and full support,” said Rep. Jim McDermott, D-Wash., chairman of the House Ways and Means subcommittee on income security and family support.

“The last thing they need or deserve is to be hit with unfair taxes or reductions in federal benefits during their time of need,” McDermott said. “They earn every benefit that is available to them, many times over.”


Rest of article at: http://www.armytimes.com/news/2007/10/military_taxbreaks_071017w/