House Approves Tax Relief for Troops

WASHINGTON -- The House voted unanimously Wednesday to let National Guard and Reserve troops who are suffering financially tap into retirement savings without penalty. Some Democrats, however, called for more support for the troops, The Associated Press reported.

The House voted 415 to 0 to waive the 10 percent penalty imposed on early withdrawals from retirement accounts and pensions for troops activated between Sept. 11, 2001, and Sept. 12, 2005, and deployed six months or longer. They would be given two years after returning to civilian life to replenish the accounts.

Employers are not required to pay workers activated to duty, nor do they have to continue providing health insurance and other benefits. Employers are required to give the same or equal job to the soldier when active duty ends.

Democrats pushed for better child tax credits and access to health insurance.

-- NYSCPA.org News Staff

Posted on 4/22/04