Page:United States Statutes at Large Volume 92 Part 3.djvu/172

 92 STAT. 2804

PUBLIC LAW 95-600—NOV. 6, 1978 as having made an additional contribution for the taxable year in an amount equal to the lesser of— "(i) the amount of such excess, or "(ii) the amount of the excess contributions for such taxable year (determined under section 4973(b)(2) without regard to subparagraph (C) thereof). "(B) AMOUNT CONTRIBUTED.—For purposes of this paragraph, the amount contributed— "(i) shall be determined without regard to this paragraph, and "(ii) shall not include any rollover contribution.

26 USC 4973.

"(C) SPECIAL RULE WHERE EXCESS DEDUCTION WAS ALLOWED FOR CLOSED YEAR.—Proper reduction shall be made in the

amount allowable as a deduction by reason of this paragraph for any amount allowed as a deduction under this section or section 220 for a prior taxable year for which the period for assessing deficiency has expired if the amount so allowed exceeds the amount which should have been allowed for such prior taxable year." (2) AMENDMENT OF SECTION 220.—Subsection (c) of section 220 (relating to definitions and special rules for retirement savings for certain married individuals) is amended by adding at the end thereof the following new paragraph:

Infra.

26 USC 220.

"(6) EXCESS CONTRIBUTIONS TREATED AS CONTRIBUTION MADE DURING SUBSEQUENT YEAR FOR WHICH THERE IS AN UNUSED LIMITATION.—

,i

"(A) IN GENERAL.—If for the taxable year the maximum amount allowable as a deduction under this section exceeds the amount contributed, then the taxpayer shall be treated as having made an additional contribution for the taxable year in an amount equal to the lesser of— "(i) the amount of such excess, or "(ii) the amount of the excess contributions for such taxable year (determined under section 4973(b)(2) without regard to subparagraph (C) thereof). "(B) AMOUNT CONTRIBUTED.—For purposes of this paragraph, the amount contributed— "(i) shall be determined without regard to this paragraph, and "(ii) shall not include any rollover contribution. "(C) SPECIAL RULE WHERE EXCESS DEDUCTION WAS ALLOWED

Ante, p. 2803.

26 USC 4973.

26 USC 408.

FOR CLOSED YEAR.—Proper reduction shall be made in the amount allowable as a deduction by reason of this paragraph for any amount allowed as a deduction under this section or section 219 for a prior taxable year for which the period for assessing a deficiency has expired if the amount so allowed exceeds the amount which should have been allowed for such prior taxable year." (3) AMENDMENT OF SECTION 4973.—Paragraph (2) of section 4973(b) (defining excess contributions) is amended to read as follows: "(2) the amount determined under this subsection for the preceding taxable year reduced by the sum of— "(A) the distributions out of the account for the taxable year which were included in the gross income of the payee under section 408(d)(1),

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