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they would otherwise be deductible, they are deductible under
section 404, subject to articulated limitations as to the amount
deductible in any taxable year. The limitations on the amount
deductible are contained in section 404(a)(1)(A), which also
refers to the deduction of contributions "In the taxable year
when paid". While section 404(a)(1)(A) provides the limits on
the amount that may be deducted, it does not specify the method
by which the actual amount of the deduction may be determined.
The applicable limitations on contributions to the CBA Plans
in this case are contained in clauses (i) and (iii) of section
404(a)(1)(A), which, in combination, provide that the overall
limitation is the greater of the amount necessary to satisfy the
minimum funding standard of section 412(a) for plan years ending
within the employer's taxable year, and an amount equal to the
normal cost of the plan, augmented by any amount necessary to
amortize unfunded costs equally over 10 years.
In addition, the flush language at the end of subparagraph
(A) of the foregoing section provides, among other things, that
the maximum amount deductible for the taxable year is to be an
amount equal to the full funding limitation for such year
determined under section 412.
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