Steube, Thompson Introduce GRACE for Military Survivors Act
WASHINGTON — U.S. Representatives Greg Steube (R-Fla.), Mike Thompson (D-Calif.), Juan Vargas (D-Calif.), and Jack Bergman (R-Mich.) today introduced the GRACE for Military Survivors Act, bipartisan legislation to provide surviving military families additional time to make important financial decisions following the loss of a loved one.
“The families of our fallen service members have already sacrificed more than most Americans can imagine. The last thing they should have to worry about is financial deadlines while grieving the loss of a spouse, parent, or child,” said Rep. Greg Steube. “As a veteran, I understand the sacrifices made by military families, and they deserve to make thoughtful financial decisions without unnecessary pressure from the federal government.”
“Grieving military families have enough on their plates when they lose a loved one — they should not be forced to make urgent, consequential financial decisions on top of everything else. Ensuring families have the time they need to decide the best path forward just makes sense. Grateful to work with my colleagues to introduce this important legislation,” said Rep. Mike Thompson.
This legislation is endorsed by American Legion, American Veterans (AMVETS), Elizabeth Dole Foundation, Gold Star Spouses of America, Military Family Advisory Network (MFAN), Tragedy Assistance Program for Survivors (TAPS), Veterans of Foreign Wars (VFW), Veterans Survivor Coalition, Vietnam Veterans of America (VVA), and With Honor.
The GRACE for Military Survivors Act would extend from one year to three years the period in which military death gratuities and Servicemembers’ Group Life Insurance (SGLI) payments may be contributed to Roth Individual Retirement Accounts (IRAs) and Coverdell Education Savings Accounts without penalty.
This legislation, developed in conjunction with Gold Star Spouses of America, helps ensure surviving spouses and children are not penalized while grieving and adjusting to life after the loss of a service member. It gives families additional time to consult financial advisors, plan for education expenses, and make informed long-term savings decisions without unnecessary pressure.
Background: When a service member dies in the line of duty, surviving spouses and children often face significant financial and personal challenges while grieving the loss of a loved one. Military death gratuities and Servicemembers’ Group Life Insurance (SGLI) benefits are intended to help provide financial stability during that difficult period.
Current law allows eligible survivors to contribute those benefits to certain tax-advantaged savings accounts, including Roth IRAs and Coverdell Education Savings Accounts. However, families must make those contributions within one year of receiving the benefits.
For many military families, that timeline can be difficult to meet as they navigate the immediate emotional, financial, and logistical challenges that follow the loss of a service member.
Read the bill text here.