S. 5445Senate119th Congress (2025-2027)In Committee

GRACE for Military Survivors Act

AI-Generated Summary

Updated September 26, 2026 at 7:56 AM UTC

The GRACE for Military Survivors Act changes the tax code so that families who receive military death benefits have more time to roll those benefits into a Roth IRA or a Coverdell education savings account. Instead of a one‑year window, the bill creates a three‑year window for making these contributions. The change applies to benefits received after the law is passed and also to benefits received since October 7, 2001, giving survivors a longer deadline to take advantage of the tax‑benefit options.

Key Provisions

Amends the Internal Revenue Code to replace the existing "1‑year period" with a "3‑year period" for contributing military death benefits to Roth IRAs (section 408A) and Coverdell education savings accounts (section 530).
The new three‑year contribution window applies to benefits received on or after the law’s enactment date.
For benefits received between October 7, 2001, and the enactment date, contributions can be made within three years of receipt or within one year after the law is enacted, whichever is later.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

September 22, 2026

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SenateIntro Referral

Introduced in Senate

September 22, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

September 22, 2026

Bill Text

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Introduced in SenateIssued September 22, 2026

119th CONGRESS

2d Session

S. 5445

IN THE SENATE OF THE UNITED STATES

September 22, 2026

Mr. Blumenthal (for himself and Mr. Sheehy) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to extend the time period for the contribution of military death benefits to Roth IRAs and Coverdell education savings accounts.

Short title

This Act may be cited as the GRACE for Military Survivors Act.

Extension of time period for contribution of military death benefits to Roth IRAs and Coverdell education savings accounts

(a)

In general

Sections 408A(e)(2)(A) and 530(d)(9)(A) of the Internal Revenue Code of 1986 are each amended by striking 1-year period and inserting 3-year period.

(b)

Effective dates

(1)

In general

Except as provided by paragraph (2), the amendments made by this section shall apply to amounts received under section 1477 of title 10, United States Code, or section 1967 of title 38 of such Code, on or after the date of the enactment of this Act.

(2)

Application of amendments to amounts received between October 7, 2001 and before enactment

The amendments made by this section shall apply to any contribution made pursuant to section 408A(e)(2)(A) or 530(d)(5) of the Internal Revenue Code of 1986, as amended by this Act, with respect to amounts received under section 1477 of title 10, United States Code, or section 1967 of title 38 of such Code, on or after October 7, 2001, and before the date of the enactment of this Act, if such contribution is made before the later of—

(A)

the date which is 3 years after the date on which such amounts were so received, or

(B)

the date which is 1 year after the date of the enactment of this Act.