GRACE for Military Survivors Act

This legislative proposal, titled the GRACE for Military Survivors Act , aims to provide greater flexibility for military families by extending the timeframe during which certain death benefits can be contributed to tax-advantaged accounts. Specifically, it amends the Internal Revenue Code to change the permissible contribution period for military death benefits into Roth IRAs and Coverdell education savings accounts from one year to three years. The amendments apply to benefits received on or after the bill's enactment date. Furthermore, the bill includes a significant retroactive provision, allowing the extended three-year period to apply to amounts received as far back as October 7, 2001 , and before the date of enactment. For these retroactive cases, contributions must be made by the later of three years after the benefit was received or one year after the bill's enactment, ensuring that survivors have ample opportunity to make these contributions.