Page:United States Statutes at Large Volume 92 Part 3.djvu/173

 PUBLIC LAW 95-600—NOV. 6, 1978

92 STAT. 2805

"(B) the distributions out of the account for the taxable year to which section 408(d)(5) applies, and 26 USC 408. "(C) the excess (if any) of the maximum amount allowable as a deduction under section 219 or 220 for the taxable year ^^^e, pp. 2803, over the amount contributed (determined without regard to ^^^'*sections 219(c)(5) and 220(c)(6)) to the accounts or for the annuities or bonds for the taxable year." (4) EFFECTIVE DATE.—

26 USC 219

(A) IN GENERAL.—The amendments made by this subsec- "°*^tion shall apply to the determination of deductions for taxable years beginning after December 31, 1975. (B) TRANSITIONAL RULE.—If, but for this subparagraph, an amount would be allowable as a deduction by reason of section 219(c)(5) or 220(c)(6) of the Internal Revenue Code of 1954 for a taxable year beginning before January 1, 1978, such amount shall be allowable only for the taxpayer's first taxable year beginning in 1978. (c) ADDITIONAL PERIOD TO RECTIFY CERTAIN EXCESS CONTRIBUTIONS.—

(1) GENERAL RULE.—Subsection (d) of section 408 (relating to 26 USC 408. tax treatment of distributions) is amended by redesignating paragraph (5) as paragraph (6) and by inserting after paragraph (4) the following new paragraph: "(5) CERTAIN DISTRIBUTIONS OF EXCESS CONTRIBUTIONS AFTER DUE DATE FOR TAXABLE YEAR.—

"(A) IN GENERAL.—In the case of any individual, if the aggregate contributions (other than rollover contributions) paid for any taxable year to an individual retirement account or for an individual retirement annuity do not exceed $1,750, paragraph (1) shall not apply to the distribution of any such contribution to the extent that such contribution exceeds the amount allowable as a deduction under section 219 or 220 for the taxable year for which the contribution was paid— "(i) if such distribution is received after the date described in paragraph (4), "(ii) but only to the extent that no deduction has been allowed under section 219 or 220 with respect to such excess contribution. "(B) EXCESS ROLLOVER CONTRIBUTIONS ATTRIBUTABLE TO ERRONEOUS INFORMATION.—If—

"(i) the taxpayer reasonably relies on information supplied pursuant to subtitle F for determining the amount of a rollover contribution, but "(ii) such information was erroneous, subparagraph (A) shall be applied by increasing the dollar limit set forth therein by that portion of the excess contribution which was attributable to such information." (2) EFFECTIVE DATE.— 26 USC 408 (A) IN GENERAL.—The amendments made by paragraph (1) "ote. shall apply to distributions in taxable years beginning after December 31, 1975. (B) TRANSITIONAL RULE.—In the case of contributions for taxable years beginning before January 1, 1978, paragraph (5) of section 408(d) of the Internal Revenue Code of 1954 Supra. shall be applied as if such paragraph did not contain any dollar limitation.

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