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disallow his IRA contribution because he was an involuntary
member of PERS, was a member of PERS for less than 3 months in
1990, and when he withdrew his contribution from PERS, he became
ineligible for any benefits, and, as such, could not obtain
double tax benefits arising from pension plans in 1990.
Determinations of respondent are presumed correct, and the burden
of proof is on petitioners to show otherwise. Rule 142(a); Welch
v. Helvering, 290 U.S. 111, 115 (1933).
In general, a taxpayer is entitled to deduct amounts
contributed to an IRA. Sec. 219(a); sec. 1.219-1(a), Income Tax
Regs. The deduction in any taxable year, however, may not exceed
the lesser of $2,000 or an amount equal to the compensation
includable in the taxpayer's gross income for such taxable year.
Sec. 219(b)(1). The maximum amount that may be deducted is also
limited where the taxpayer or spouse of the taxpayer is an
"active participant" in a retirement plan qualified under section
401(a). Sec. 219(g)(1). An "active participant" is defined by
section 219(g)(5) as an individual:
(A) who is an active participant in--
(i) a plan described in section 401(a) which includes
a trust exempt from tax under section 501(a),
(ii) an annuity plan described in section 403(a),
(iii) a plan established for its employees by the
United States, by a State or political subdivision thereof,
or by an agency or instrumentality of any of the foregoing,
(iv) an annuity contract described in section 403(b),
or
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