Page:United States Statutes at Large Volume 95.djvu/302

 95 STAT. 276

PUBLIC LAW 97-34—AUG. 13, 1981 "(A) the lesser of— "(i) $2,250, or "(ii) an amount equal to the compensation includible in the individual's gross income for the taxable year, over "(B) the amount allowed as a deduction under subsection (a) for the taxable year. In no event shall the amount allowable as a deduction under paragraph (1) exceed $2,000. "(d) OTHER LIMITATIONS AND RESTRICTIONS.— "(1) INDIVIDUALS WHO HAVE ATTAINED AGE 7 0 ^ 2. - N O deduction

26 USC 402.

shall be allowed under this section with respect to any qualified retirement contribution which is made for a taxable year of an individual if such individual has attained age 70 V before the a close of such taxable year. "(2) RECONTRIBUTED AMOUNTS.—No deduction shall be allowed under this section with respect to a rollover contribution described in section 402(a)(5), 402(a)(7), 403(a)(4), 403(b)(8), 408(d)(3),or409(b)(3)(C). "(3) AMOUNTS CONTRIBUTED UNDER ENDOWMENT CONTRACT.—In

the case of an endowment contract described in section 408(b), no deduction shall be allowed under this section for that portion of the amounts paid under the contract for the taxable year which is properly allocable, under regulations prescribed by the Secretary, to the cost of life insurance. "(e) DEFINITION OF RETIREMENT SAVINGS (CONTRIBUTIONS, ETC.—For

purposes of this section— "(1) QUALIFIED RETIREMENT CONTRIBUTION.—The term 'qualified retirement contribution' means— "(A) any qualified voluntary employee contribution paid in cash by the individual for the taxable year, and "(B) any amount paid in cash for the taxable year by or on behalf of such individual for his benefit to an individual retirement plan. For purposes oi the preceding sentence, the term 'individual retirement plan' includes a retirement bond described in section 409 only if the bond is not redeemed within 12 months of its issuance. "(2) OUAUFIED VOLUNTARY EMPLOYEE CONTRIBUTION.—

(A) IN GENERAL.—The term 'qualified voluntary employee contribution' means any voluntary contribution— "(i) which is made by an individual as an employee under a qualified employer plan or government plan, which plan allows an employee to make contributions which may be treated as qualified voluntary employee contributions under this section, and "(ii) with respect to which the individual has not designated such contribution as a contribution which should not be taken into account under this section. "(B) VOLUNTARY CONTRIBUTION.—For purposes of subparagraph (A), the term 'voluntary contribution' means any contribution which is not a mandatory contribution (within the meaning of section 41 l(c)(2)(C)). "(C) DESIGNATION.—For purposes of determining whether or not an individual has made a designation described in subparagraph (A)(ii) with respect to any contribution during any calendar year under a qualified employer plan or government plan, such individual shall be treated as having

�