Page:United States Statutes at Large Volume 100 Part 3.djvu/607

 PUBLIC LAW 99-514—OCT. 22, 1986

100 STAT. 2415

as the Secretary may prescribe) as a contribution for which a deduction is not allowable under section 219. "(ii) DESIGNATION.—Any designation under clause (i) shall be made on the return of tax imposed by chapter 1 for the taxable year. "(3) TIME WHEN CONTRIBUTIONS MADE.—In determining for which taxable year a designated nondeductible contribution is made, the rule of section 219(f)(3) shall apply. "(4) INDIVIDUAL REQUIRED TO REPORT AMOUNT OF DESIGNATED NONDEDUCTIBLE CONTRIBUTIONS.—

"(A) IN GENERAL.—Any individual who— "(i) makes a designated nondeductible contribution to any individual retirement plan for any taxable year, or "(ii) receives any amount from any individual retirement plan for any taxable year, shall include on his return of the tax imposed by chapter 1 for such taxable year and any succeeding taxable year (or on such other form as the Secretary may prescribe for any such taxable year) information described in subparagraph (B). "(B) INFORMATION REQUIRED TO BE SUPPUED.—The following information is described in this subparagraph: "(i) The amount of designated nondeductible contributions for the taxable year, "(ii) The amount of distributions from individual retirement plans for the taxable year, "(iii) The excess (if any) of— "(I) the aggregate amount of designated nondeductible contributions for all preceding taxable years, over "(II) the aggregate amount of distributions from individual retirement plans which was excludable from gross income for such taxable years. "(iv) The aggregate balance of all individual retireu ment plans of the individual as of the close of the calendar year with or within which the taxable year ends. "(v) Such other information as the Secretary may prescribe. "(C) PENALTY FOR REPORTING CONTRIBUTIONS NOT MADE.—

"For penalty where individual reports designated nondeductible contributions not made, see section 6693(b)." (b) EXCESS CONTRIBUTIONS.— (1) APPLICATION OF TAX.—Section 4973(b) (defining excess con-

tributions) is amended by adding at the end thereof the following new sentence: "For purposes of paragraphs (1)(B) and (2)(C), the amount allowable as a deduction under section 219 (after application of section 408(o)(2)(B)(ii)) shall be increased by the nondeductible limit under section 408(o)(2)(B). (2) RETURN OF EXCESS CONTRIBUTIONS.—Paragraph (5) of section 408(d) (relating to tax treatment of distributions) is amended by adding at the end thereof the following new sentence: For purposes of this paragraph, the amount allowable as a deduction under section 219 (after application of section 408(o)(2)(B)(ii)) shall be increased by the nondeductible limit under section 408(o)(2)(B)."

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