GRACE for Military Survivors Act

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

(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.