Page:United States Statutes at Large Volume 90 Part 2.djvu/269

 PUBLIC LAW 94-455—OCT. 4, 1976

90 STAT. 1737

or 220 for the taxable year over the amount contributed to the Ante, p. 1734. accounts or for the annuities or bonds for the taxable year and reduced by the sum of the distributions o u t of the account ( for the taxable year and all prior taxable years) which were included in the gross income of the payee under section 408(d)(1). For purposes of this subsection, any contribution which is distributed from the individual retirement account, individual retirement annuity, or bond in a distribution to which section 4 0 8 (d)(4) applies shall be treated as an amount not contributed if such distribution consists of an excess contribution solely because of employer contributions to a plan or contract described in section 219(b)(2) or by reason of the application of section 2 1 9 (b)(1) (without regard to the $1,500 limitation) or section 220(b)(1) (without regard to the $1,750 limitation) and only if such distribution does not exceed the excess of $1,500 or $1,750 if applicable, over the amount described in paragraph (1)(B)." (9) Subsection (d) of section 6047 (relating to other p r o - 26 USC 6047. grams) is amended by inserting "or 2 2 0 (a) " after " 2 1 9 (a) ". (10) Paragraph (1) of section 408(d) (relating to tax treat- 26 USC 408. ment of distributions) is amended by striking out the second sentence and inserting in lieu thereof the following: "Notwithstanding any other provision of this title (including chapters 11 and 12), the basis any person in such a n account or annuity is zero.". (c) CLERICAL AMENDMENT. — The table of sections for part VII of

subchapter B of chapter 1 is amended by striking out the item relating to section 220 and inserting in lieu thereof the following: "Sec. 220. Retirement savings for certain married individuals. "Sec. 221. Cross references.". (d) EFFECTIVE D A T E. — The amendments made by this section, other 26 USC 220 than the amendment made by subsection (b)(3), shall apply to taxa- note. ble years beginning after December 31, 1976. The amendment made by subsection (b)(3) shall apply to years beginning after December 31, 1976. SEC. 1502. LIMITATION ON CONTRIBUTIONS TO CERTAIN PENSION, ETC., PLANS. (a) IN GENERAL.— (1) L I M I T ON CONTRIBUTIONS.—Section 415(c) ( r e l a t i n g to limi-

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26 USC 415.

tation for defined contribution plans) is amended by adding a t the end thereof the following new paragraph:

I

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" (5) APPLICATION W I T H SECTION 404(e)(4). — I n the case of a

plan which provides contributions or benefits for employees some or all of whom are employees within the meaning of section 401 (c)(1), the amount determined under paragraph (1)(B) with respect to any participant shall not be less than the amount deductible under section 404(e) with respect to any individual who is an employee within the meaning of section 4 0 1 (c)(1). " (2)

MINIMUM DEDUCTION LIMITATION.—Section 4 0 4 (e)(4)

of

such Code (relating to minimum deductible amount for pension plan contributions by self-employed individuals) is amended by a d d i n g after subparagraph (B) the following: " T h i s paragraph does not apply for any taxable year to any employee whose adjusted gross income for such taxable year (determined separately for each individual, without regard to any community property laws, and without regard to the deduction allowable under subsection (a)) exceeds $15,000,"

26 USC 404.

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