Page:United States Statutes at Large Volume 95.djvu/301

 PUBLIC LAW 97-34—AUG. 13, 1981

95 STAT. 275

"(B) CERTAIN LIMITATIONS DO NOT APPLY TO EMPLOYER

CONTRIBUTION.—Paragraph (1) of this subsection and paragraph (1) of subsection (d) shall not apply with respect to the employer contribution to a simplified employee pension. (C) SPECIAL RULE FOR APPLYING SUBPARAGRAPH (Axii).—In the case of an employee who is an officer, shareholder, or owner-employee described in section 408(k)(3), the $7,500 Post, p. 283. amount specified in subparagraph (A)(ii) shall be reduced by the amount of tax taken into account with respect to such individual under subparagraph (D) of section 408(k)(3). "(3) SPECIAL RULE FOR INDIVIDUAL RETIREMENT PLANS.—If the

individual has paid any qualified voluntary employee contributions for the taxable year, the amount of the qualified retirement contributions (other than employer contributions to a simplified employee pension) which are paid for the taxable year to an individual retirement plan and which are allowable as a deduction under subsection (a) for such taxable year shall not exceed— "(A) the amount determined under paragraph (1) for such taxable year, reduced by "(B) the amount of the qualified voluntary employee contributions for the taxable year. "(4) CERTAIN DIVORCED INDIVIDUALS.—

"(A) IN GENERAL.—In the case of an individual to whom this paragraph applies, the limitation of paragraph (1) shall not be less than the lesser of— "(i) $1,125, or "(ii) the sum of the amount referred to in paragraph (1)(B) and any qualifying alimony received by the individual during the taxable year. "(B) QUALIFYING AUMONY.—For purposes of this paragraph, the term 'qualifying alimony' means amounts includible in the individual's gross income under paragraph (1) of section 71(a) (relating to decree of divorce or separate maintenance). "(C) INDIVIDUALS TO WHOM PARAGRAPH APPLIES.—This

paragraph shall apply to an individual if^ "(i) an individual retirement plan was established for the benefit of the individual at least 5 years before the beginning of the calendar year in which the decree of divorce or separate maintenance was issued, and "(ii) for at least 3 of the former spouse's most recent 5 taxable years ending before the taxable year in which the decree was issued, such former spouse was allowed a deduction under subsection (c) (or the corresponding provisions of prior law) for contributions to such individual retirement plan. "(c) SPECIAL RULES FOR CERTAIN MARRIED INDIVIDUALS.—

"(1) IN GENERAL.—In the case of any individual with respect to whom a deduction is otherwise allowable under subsection (a)— "(A) who files a joint return under section 6013 for a taxable year, and "(B) whose spouse has no compensation (determined without regard to section 911) for such taxable year, Ante, p. 190. there shalibe allowed as a deduction any amount paid in cash for the taxable year by or on behalf of the individual to an individual retirement plan established for the benefit of his spouse. "(2) LIMITATION.—The amount allowable as a deduction under paragraph (1) shall not exceed the excess of—

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