Page:United States Statutes at Large Volume 100 Part 3.djvu/603

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2411

(B) is not subject to regulation by any State insurance department, (C) has a right to make unlimited assessments against all members to cover current claims and losses, and (D) is not a member of, nor subject to protection by, any insurance guaranty plan or association of any State. (b) EFFECTIVE DATE.—The provisions of subsection (a) shall apply to payments made to and receipts of physicians' and surgeons' mutual protection and interindemnity arrangements or associations, and refunds of payments by such arrangements or associations, after the date of the enactment of this Act, in taxable years ending after such date.

TITLE XI—PENSIONS AND DEFERRED COMPENSATION; EMPLOYEE BENEFITS; EMPLOYEE STOCK OWNERSHIP PLANS Subtitle A—Pensions and Deferred Compensation PART I—LIMITATIONS ON TAX-DEFERRED SAVINGS Subpart A—Rules Applicable to IRAs SEC. 1101. LIMITATIONS ON IRA DEDUCTIONS FOR ACTIVE PARTICIPANTS IN CERTAIN PENSION PLANS. (a) LIMITATIONS ON DEDUCTIONS FOR ACTIVE PARTICIPANTS.—

(1) IN GENERAL.—Section 219 (relating to deduction for retirement savings) is amended by redesignating subsection (g) as subsection (h) and by adding after subsection (0 the following new subsection: "(g) LIMITATION ON DEDUCTION FOR ACTIVE PARTICIPANTS IN CERTAIN PENSION PLANS.—

"(1) IN GENERAL.—If (for any part of any plan year ending with or within a taxable year) an individual or the individual's spouse is an active participant, each of the dollar limitations contained in subsections (b)(1)(A) and (c)(2) for such taxable year shall be reduced (but not below zero) by the amount determined under paragraph (2). "(2) AMOUNT OF REDUCTION.—

"(A) IN GENERAL.—The amount determined under this paragraph with respect to any dollar limitation shall be the amount which bears the same ratio to such limitation as— "(i) the excess of— "(I) the taxpayer's adjusted gross income for such taxable year, over "(II) the applicable dollar amount, bears to "(ii) $10,000. "(B) N o REDUCTION BELOW $200 UNTIL COMPLETE PHASE-

OUT.—No dollar limitation shall be reduced below $200 under paragraph (1) unless (without regard to this subparagraph) such limitation is reduced to zero.

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