it simply isn't true that the law is clear on this, and that use of these accounts within reason is a clear violation of the law or IRS regulations, or is contingent simply on the idea that one won't get caught. I hold a law license, I asked a friend who is a tax practitioner to take a hard look at this, and their conclusion was that individual accounts, at least as we use them and as most troops do, are not a violation of either the letter or the spirit of the federal statutes and IRS regulations. As Fred8033 said, ask a different tax lawyer and you can get a different answer, I would bet