26 U.S.C. § 218 — Untitled legal text

Page 948 TITLE 26—INTERNAL REVENUE CODE [§ 218 EFFECTIVE DATE OF 1969 AMENDMENT Pub. L. 91–172, title II, § 231(d), Dec. 30, 1969, 83 Stat. 580, as amended by Pub. L. 91–642, § 2, Dec. 31, 1970, 84 Stat. 1880; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘The amendments made by this section [enacting section 82 of this title and amending this sec- tion and sections 1001 and 1016 of this title] shall apply to taxable years beginning after December 31, 1969, ex- cept that— ‘‘(1) section 217 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as amended by subsection (a)) shall not apply to any item to the extent that the taxpayer received or accrued reimbursement or other expense allowance for such item in a taxable year be- ginning on or before December 31, 1969, which was not included in his gross income; and ‘‘(2) the amendments made by this section shall not apply (at the election of the taxpayer made at such time and manner as the Secretary of the Treasury or his delegate prescribes) with respect to moving ex- penses paid or incurred before January 1, 1971, in con- nection with the commencement of work by the tax- payer as an employee at a new principal place of work of which the taxpayer had been notified by his employer on or before December 19, 1969.’’ EFFECTIVE DATE Section applicable to expenses incurred after Dec. 31, 1963, in taxable years ending after such date, see sec- tion 213(d) of Pub. L. 88–272, set out as an Effective Date of 1964 Amendment note under section 62 of this title. MOVING EXPENSES OF MEMBERS OF THE UNIFORMED SERVICES Pub. L. 93–490, § 2, Oct. 26, 1974, 88 Stat. 1466, author- ized the Secretary of the Treasury, applicable with re- spect to taxable years ending before January 1, 1976, to: (1) enter into an agreement with the Secretary con- cerned under which the Secretary concerned would not be required to withhold tax on, or to report, mov- ing expense reimbursements made to members of the armed forces; (2) permit any taxpayer who was a member of the armed forces not to include in adjusted gross income the amount of any reimbursement in kind of moving expenses made by the Secretary concerned; and (3) permit any taxpayer who was a member of the armed forces to deduct any amount paid by him as moving expenses in connection with any move re- quired by the Secretary concerned, in excess of any reimbursement received for such expenses, without regard to the provisions of subsec. (c) of this section, to the extent it was otherwise deductible under this section. [§ 218. Repealed. Pub. L. 95–600, title I, § 113(a)(1), Nov. 6, 1978, 92 Stat. 2778] Section, added Pub. L. 92–178, title VII, § 702(a), Dec. 10, 1971, 85 Stat. 561; amended Pub. L. 93–625, §§ 11(d), 12(b), Jan. 3, 1975, 88 Stat. 2120; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834, related to con- tributions to candidates for public office. A prior section 218 was renumbered section 224 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective with respect to contributions the payment of which is made after Dec. 31, 1978, in taxable years beginning after such date, see section 113(d) of Pub. L. 95–600, set out as an Effective Date of 1978 Amendment note under section 24 of this title. § 219. Retirement savings (a) Allowance of deduction In the case of an individual, there shall be al- lowed as a deduction an amount equal to the qualified retirement contributions of the indi- vidual for the taxable year. (b) Maximum amount of deduction (1) In general The amount allowable as a deduction under subsection (a) to any individual for any tax- able year shall not exceed the lesser of— (A) the deductible amount, or (B) an amount equal to the compensation includible in the individual’s gross income for such taxable year. (2) Special rule for employer contributions under simplified employee pensions This section shall not apply with respect to an employer contribution to a simplified em- ployee pension. (3) Plans under section 501(c)(18) Notwithstanding paragraph (1), the amount allowable as a deduction under subsection (a) with respect to any contributions on behalf of an employee to a plan described in section 501(c)(18) shall not exceed the lesser of— (A) $7,000, or (B) an amount equal to 25 percent of the compensation (as defined in section 415(c)(3)) includible in the individual’s gross income for such taxable year. (4) Special rule for simple retirement accounts This section shall not apply with respect to any amount contributed to a simple retire- ment account established under section 408(p). (5) Deductible amount For purposes of paragraph (1)(A)— (A) In general The deductible amount is $5,000. (B) Catch-up contributions for individuals 50 or older (i) In general In the case of an individual who has at- tained the age of 50 before the close of the taxable year, the deductible amount for such taxable year shall be increased by the applicable amount. (ii) Applicable amount For purposes of clause (i), the applicable amount is $1,000. (C) Cost-of-living adjustment (i) In general In the case of any taxable year beginning in a calendar year after 2008, the $5,000 amount under subparagraph (A) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment de- termined under section 1(f)(3) for the cal- endar year in which the taxable year be- gins, determined by substituting ‘‘cal- endar year 2007’’ for ‘‘calendar year 2016’’ in subparagraph (A)(ii) thereof. (ii) Rounding rules If any amount after adjustment under clause (i) is not a multiple of $500, such amount shall be rounded to the next lower multiple of $500.