Page:United States Statutes at Large Volume 100 Part 3.djvu/604

 100 STAT. 2412

PUBLIC LAW 99-514—OCT. 22, 1986 "(C) ROUNDING.—Any amount determined under this paragraph which is not a multiple of $10 shall be rounded to the next lowest $10. (3) ADJUSTED GROSS INCOME; APPLICABLE DOLLAR AMOUNT.—

For purposes of this subsection— "(A) ADJUSTED GROSS INCOME.—Adjusted gross income of any taxpayer shall be determined— "(i) after application of sections 86 and 469, and "(ii) without regard to section 911 or the deduction allowable under this section. "(B) APPLICABLE DOLLAR AMOUNT.—The term 'applicable dollar amount' means— "(i) in the case of a taxpayer filing a joint return, $40,000, "(ii) in the case of any other taxpayer (other than a married individual filing a separate return), $25,000, and "(iii) in the case of a married individual filing a separate return, zero. '(4)

SPECIAL RULE FOR MARRIED INDIVIDUALS FILING SEPA-

RATELY.—In the case of a married individual filing a separate return for any taxable year, paragraph (1) shall be applied without regard to whether such individual's spouse is an active participant for any plan year ending with or within such taxable year. "(5) ACTIVE PARTICIPANT.—For purposes of this subsection, the term 'active participant' means, with respect to any plan year, an individual— "(A) who is an active participant in— "(i) a plan described in section 401(a) which includes a trust exempt from tax under section 501(a), "(ii) an annuity plan described in section 403(a), "(iii) a plan established for its employees by the United States, by a State or political subdivision thereof, or by an agency or instrumentality of any of the foregoing, "(iv) an annuity contract described in section 403(b), or "(v) a simplified employee pension (within the meaning of section 408(k)), or "(B) who makes deductible contributions to a trust described in section 501(c)(18). The determination of whether an individual is an active participant shall be made without regard to whether or not such individual's rights under a plan, trust, or contract are nonforfeitable. An eligible deferred compensation plan (within the meaning of section 4570t))) shall not be treated as a plan described in subparagraph (A)(iii). "(6)

CERTAIN INDIVIDUALS NOT TREATED AS ACTIVE PARTICI-

PANTS.—For purposes of this subsection, any individual described in any of the following subparagraphs shall not be treated as an active participant for any taxable year solely because of any participation so described: "(A) MEMBERS OF RESERVE COMPONENTS.—Participation in

a plan described in subparagraph (A)(iii) of paragraph (5) by reason of service as a member of a reserve component of the Armed Forces (as defined in section 261(a) of title 10), unless

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