Heroes Act – Still in Existence?
A few years ago, I had a client that had lost her husband serving overseas in Afghanistan. We were able to roll the entire survivor benefit into a Roth IRA in her name.
What I cannot find is if this is still allowed. Thoughts?
Permalink Submitted by Alan Spross on Tue, 2011-08-30 16:36
Yes, this is still allowed.
It is referred to as Military Death Gratuities and Service Members Group Life Insurance Payments (SGLI) on p 64 of Pub 590. The retroactive rollovers provision has expired, but beneficiaries can still do the Roth IRA rollover up to 1 year from the date the benefit was received. It is treated as a qualified rollover contribution to the Roth IRA.