Page:United States Statutes at Large Volume 88 Part 1.djvu/1002

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PUBLIC LAW 93-406-SEPT. 2, 1974

[88

STAT.

26 USC 401

(2) The amendments made by subsection (c) apply to— note (A) taxable years beginning after December 31, 1975, and (B) any other taxable years beginning after December 31, 1973, for which contributions were made under the plan in excess of the amounts permitted to be made under sections Ante, p. 952. 404(e) aud 1379(b) as in effect on the day before the date of the enactment of this Act. 26 USC 401 (3^ The amendments made by subsection (d) apply to taxable note years beginning after December 31, 1975. 26 USC 401 ' ^4^ -j^jjg amendments made by subsections (e) and (f) apply note to contributions made in taxable years beginning after December 31, 1975. 26 USC 72 note. (5) x h c amendments made by subsection (g) apply to distributions made in taxable years beginning after December 31, 1975. 26 USC 72 note. ^g^ jj^g amendments made by subsection (h) apply to taxable years ending after the date of enactment of this Act. SEC. 2002. DEDUCTION FOR RETIREMENT SAVINGS. (a)

26 USC 211. 26 USC 220.

26 USC 219.

26 USC 408.

26 USC 409.

26 USC 401,

ALLOWANCE OF DEDUCTION.—

(1) IN GENERAL.—Part VII of subchapter B of chapter 1 (relating to additional itemized deductions for individuals) is amended by redesignating section 219 as 220 and by inserting after section 218 the following new section: ..§£(. 219. RETIREMENT SAVINGS. " (a) DEDUCTION ALLOWED.—In the case of an individual, there is allowed as a deduction amounts paid in cash during the taxable year by or on behalf of such individual for his benefit— "(^2) to an individual retirement account described in section 408(a), "(2) for an individual retirement annuity described in section 408(b), or "(3) for a retirement bond described in section 409 (but only if the bond is not redeemed within 12 months of the date of its issuance). For purposes of this title, any amount paid by an employer to such a retirement account or for such a retirement annuity or retirement bond constitutes payment of compensation to the employee (other than a self-employed individual who is an employee within the meaning of section 401(c)(1) includible in his gross income, whether or not a deduction for such payment is allowable under this section to the employee after the application of subsection (b). "(b)

LIMITATIONS AND RESTRICTIONS.— " (1) MAXIMUM DEDUCTION.—The amount

allowable as a deduction under subsection (a) to an individual for any taxable year may not exceed an amount equal to 15 percent of the compensation includible in his gross income for such taxable year, or $1,500, whichever is less. "(2)

26 USC 501 26 USC 403 26 USC 405.

COVERED BY CERTAIN OTHER PLANS.—No

deduction

is

allowed under subsection (a) for an individual for the taxable year if for any part of such year— " (A) he was 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 qualified bond purchase plan described in section 405(a), or "(iv) a plan established for its employees by the United States, by a State or political division thereof, or

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