GRACE for Military Survivors Act

Key Points

• This bill gives families of fallen service members more time to put their military death benefits into special savings accounts. Currently, families only have one year to move this money into a Roth IRA or a Coverdell education account. This bill would change that limit to three years.
• Military death benefits are payments given to survivors when a service member dies. By putting this money into these specific accounts, the money can grow tax-free. This helps families secure their financial future or pay for school during a very difficult time.
• The change would also help families who received benefits as far back as October 2001. If the bill passes, those families would get an extra year from the date the law starts to move their past benefits into these savings accounts.
• A group of both Democrats and Republicans introduced this bill. They believe that one year is not enough time for a grieving family to make big financial decisions while they are dealing with the loss of a loved one.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.